Treasury report calls for stricter oversight of stablecoins

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — The Biden administration is calling on Congress to pass legislation that would strengthen government regulation of stablecoins, a form of cryptocurrency that has soared in popularity in the past year. In a 22-page report issued Monday, the Treasury Department and several other regulators said the legislation should require that stablecoin issuers become banks, which would potentially subject them to a wide range of rules, including those requiring that banks hold sufficient cash reserves and implement measures to prevent money laundering and other illicit activities. Officials says stablecoins largely fall through the gaps in regulations that currently govern banks, securities exchanges, and investment funds.