Cryptocurrencies

Treasury Says New Law Only Way to Fully Contain Stablecoin Risks

  • Treasury’s Liang says stablecoins are ‘potentially big risk’
  • ‘Considerable progress’ seen in study of Treasuries market

Nellie Liang

Photographer: Stefani Reynolds/Bloomberg
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The U.S. Treasury’s top official for financial oversight said government regulators need action from lawmakers to adequately protect investors -- and the wider financial system -- from risks posed by stablecoins.

“If Congress does not enact legislation, the regulators will try to use what authority they have,” but they will be left without sufficient oversight powers, Nellie Liang, the Treasury undersecretary for domestic finance, said Friday in an interview with Bloomberg News, referring to what agencies can do without congressionally mandated authority.