Federal Regulators Recommend Bank Regulation for Stablecoins

On November 2, 2021, Cravath prepared for its clients a resource entitled “Federal Regulators Recommend Bank Regulation for Stablecoins,” which examines a recently published report on stablecoins issued by the President’s Working Group on Financial Markets, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. The report focuses on stablecoin arrangements that are pegged to a fiat‑currency and recommends that Congress pass legislation to regulate stablecoin issuers and other parties or, in the absence of legislation, that the Financial Stability Oversight Council (FSOC) act to regulate stablecoin activities.

The resource identifies implications the report could have on next steps in the legislative and regulatory processes and summarizes key points relevant to the FSOC designating stablecoin‑related activities as systemically important.

Please click here to read the resource.