Cryptocurrencies
U.S. Warns Crypto Stablecoins on Money Laundering, Risk Controls
- President’s Working Group issues statement on stablecoins
- Group says tokens should be backed by adequate cash reserves
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Top U.S. financial regulators are warning firms behind an important part of the cryptocurrency market to tighten protections against money laundering.
At issue are so-called stablecoins that traders rely on to facilitate payments for digital tokens. In a Wednesday statement, the Treasury Department and other agencies said they should be used in a way that “effectively manages risk and maintains the stability of the U.S. domestic and international financial and monetary systems.”