United States:
President’s Working Group Report Attacks Stablecoins As Well As CeFi Platforms And DeFi Protocols
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In as much an attack on centralized crypto asset trading
(“CeFI”) platforms and decentralized finance
(“DeFi”) protocols as stablecoins, the President’s
Working Group on Financial Markets, the Federal Deposit Insurance
Corporation and the Office of the Comptroller of the Current
(collectively “Regulators”) issued a much anticipated
report on November 1, 2021, making recommendations that Congress
should implement through new laws to better regulate
stablecoins.
Indeed, first and foremost among the risks of stablecoins
spotlighted by the Regulators were stablecoins potential use to
facilitate “speculative digital asset trading” on CeFi
platforms or through DeFi protocols which “presen[t] risks
related to market integrity and investor
protection.”Â
Additionally, claimed the Regulators, stablecoins implicate
risks of investor protection and illicit finance, as wells as
prudential concerns. According to the Regulators, “[i]f
stablecoin issuers…
