User Clip: Treasury Undersecretary Testifies on Regulating Stablecoins

Nellie Liang, treasury undersecretary for domestic finance, testified on the risks stablecoins pose to consumers and the financial market and why these risks need to be addressed through regulations as stablecoins and other cryptocurrencies gain in popularity. Her testimony came before the Senate Banking Committee. A stablecoin is a type of cryptocurrency that can offer price stability and is backed by a central bank reserve asset. Other topics discussed included bad actors using stablecoins for illicit purposes and how stablecoins can negatively impact the U.S. financial system. Ms. Liang’s testimony came as the President’s Working Group on Financial Markets recently issued a report on how the U.S. should treat stablecoins. close