The U.S. Treasury calls for federal regulation of stablecoins and electronic currencies, rather than the current state-level regulation

ChainCatcher News, U.S. Deputy Treasury Secretary Nellie Liang delivered a speech advocating for the inclusion of non-bank payment providers, including money transfer companies, electronic money companies, and stablecoin issuers, under federal regulation rather than the current state-level regulation. She emphasized that the changes in the digital payment environment mean that the existing state regulatory model is no longer applicable.

Liang pointed out that with the proliferation of electronic applications, money transfer companies need to manage a large amount of cash, especially in the stablecoin sector, but the legal differences in state investment laws create regulatory complexities. She criticized the existing patchwork regulatory system, arguing that it is burdensome and inefficient, failing to effectively address risks. State-level regulation prevents these companies from accessing federal payment systems, such as FedACH and FedNow. She called on Congress to establish a unified regulatory framework to better address the unique risks posed by stablecoins.