Administration planning crypto charter proposal: report

The Biden administration’s upcoming report on digital assets will include recommendations on imposing bank-like regulation on crypto companies that issue stablecoins, The Wall Street Journal reported.

Charter: The article, which reiterates previous coverage predicting a late-October release of the recommendations, also says the administration is expected to propose a special-purpose charter for such firms that would be tailored to their business models.

IMF: The article follows an International Monetary Fund report raising concerns about crypto asset risks and calling for coordination to establish international standards for regulating securities, payments, and stablecoins.

Coordination: The IMF’s latest Global Financial Stability Report calls on regulators to develop risk controls in areas of systemic importance, address data gaps to improve monitoring, enhance disclosures, and implement central bank digital currencies.

Background: Recent ICBA blog posts detail growing stablecoin risks to consumers and the financial system, how policymakers are responding, and what DeFi means for community banks.