In March, President Joe Biden signed an executive order requiring a comprehensive review of the cryptocurrency industry. People familiar with the matter told The Washington Post that the Treasury Department has prepared reports, and that the reports recommend major regulation of the cryptocurrency industry.
The reports note that cryptocurrencies pose an economic danger in several areas. The review concluded that crypto is not a “threat” to the stability of the financial system at large, but that could change abruptly.
According to the sources, who spoke to The Post on condition of anonymity, one of the reports focuses on stablecoins, a form of digital currency whose value is pegged to the dollar. Earlier this year, a stablecoin called Terra collapsed, resulting in a downturn in the broader crypto market.