Partner Ignacio Sandoval spoke with Global Risk Regulator about a recent report on stablecoins from the President’s Working Group on Financial Markets, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency, which lays out a list of associated risks and recommendations—including that stablecoin issuers should be overseen by the FDIC. However, some in the industry believe it would be more appropriate to regulate them like money market funds, given their similar characteristics. “I think what probably tilted this was that it is more for payments,” Ignacio explained. “Money market funds really are short-term investment vehicles. So, you really have a payment clearance and settlement issue with stablecoins.”
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