About a week ago, we had that stablecoin report that came out of the President’s Working Group (PWG).
I did a quick TLDR of the report in the message referred to above.
However, I said I wanted to do a complete and comprehensive read before I did a video breaking it down – and that is exactly what I have for you today!
I’ll start by saying that the report is very interesting when you factor in the PWG’s fascinating history. It was founded following the stock market crash of 1987 (also known as Black Monday). Obviously, the PWG’s purpose is to prevent stock market crashes from happening.
The inner workings of the PWG are pretty mysterious since all meetings are private and any recommendations they have about how to “protect” the stock market are only shared with the president of the United States.
As far as I know, the first time the PWG publicly announced its interest in stablecoins was in December last year, and they said a lot of the same stuff we hear from regulators now, namely SEC Chairman Gary Gensler.
This is interesting because Gary is often credited as the creator of these regulatory remarks even though he wasn’t around until April this year. In July, Treasury Secretary Janet Yellen announced that the PWG would be publishing a report about possible stablecoin regulations, and it was pretty crazy to see how the crypto industry reacted. For example, Circle and Paxos revealed the assets backing their stablecoins, and Terra’s UST exploded in popularity.
The PWG’s stablecoin report finally came out on November 1st, and it calls for politicians in Congress to act on the recommendations it contains. This is somewhat surprising and I see it as a sign that the PWG is trying to avoid the backlash that would come from any heavy handed handling of stablecoins.
That said, the PWG said they and their constituents would step in to regulate stablecoins if politicians don’t, and that could be a big problem.
That’s all I’ll say for now since you’ll get the full story in the video. This one’s a bit lengthier than usual, but its for good reason, and it’s one that you can’t afford to miss.
⛓️ 🔗 Useful Links 🔗 ⛓️
► Plunge Protection Team Original Article: https://www.washingtonpost.com/wp-srv…
► PWG Stablecoin Report December 2020: https://home.treasury.gov/news/press-…
► PWG Announces Stablecoin Regulation Recommendations July 2021: https://home.treasury.gov/news/press-…
► PWG Report On Regulatory Recommendations For Stablecoins November 2021: https://home.treasury.gov/news/press-…
► FSO Global Stablecoin Oversight Report October 2020: https://www.fsb.org/2020/10/regulatio…
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.