Fedgov Regulators Warn That Circle’s Tether Is The Backstop For U.S

Cryptocurrency that are designed to maintain a stable value relative to a specific asset or currency, such as the US dollar. They are often used as a means of transferring value between different cryptocurrency exchanges or as a store of value in times of market volatility.

In the United States, stablecoins are subject to regulatory oversight by federal and state agencies, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Office of the Comptroller of the Currency (OCC). These agencies are responsible for enforcing laws and regulations related to securities, commodities, and banking.

Recent statements from regulators and policymakers suggest that there is growing interest in developing a regulatory framework for stablecoins and other types of cryptocurrencies. This includes proposals for a Federal Reserve-backed digital currency and increased oversight of stablecoin issuers and exchanges.

Overall, while stablecoins like USDC and Tether can offer some advantages for users, they are still subject to regulatory and market risks. Investors and users should be aware of these risks and should carefully consider the regulatory and legal landscape surrounding stablecoins before investing or using them.