Amid massive growth of the stablecoin market place, the Us Treasury Department has reportedly discussed potential regulation for individual stablecoins.

The Treasury conducted several meetings last calendar week to examine the risks of stablecoins for users, markets or the financial system as well every bit to acquire almost their benefits and consider potential regulation, Reuters reported on Sept 10.

"The Treasury Section is meeting with a broad range of stakeholders, including consumer advocates, members of Congress and market participants," Treasury spokesman John Rizzo said.

Citing three anonymous sources familiar with the matter, the study notes that one of the Treasury'due south meetings took place last Fri, with officials asking the crypto community whether stablecoins would require direct oversight if this type of cryptocurrency becomes widely adopted. They also reportedly discussed how regulators should mitigate the risks if likewise many people decide to withdraw their stablecoins all at once, and whether major stablecoins should exist backed past traditional assets.

Treasury officials as well previously met with a group of banks and credit unions to discuss potential stablecoin regulation. One Reuters source said that the officials were collecting data and did not share their thinking on how stablecoins should be regulated.

Related: Stablecoins are assets — non currencies, says ECB president

The Treasury's increased attention to the stablecoin market place follows a parabolic surge of stablecoins over the past twelvemonth. The full market capitalization of major stablecoins like Tether (USDT) and USDC Coin (USDC) has jumped to more than $125 billion at the time of writing from but effectually $37 billion in January. Many traditional finance companies like payment giant MasterCard accept reiterated their commitment to back up stablecoin-related solutions, with Visa challenge that stablecoins are "starting to live upward the promise of digital fiat."

The news comes before long later on U.Southward. Senator Elizabeth Warren called the cryptocurrency industry the "new shadow banking concern," suggesting that it'southward "worth because" banning U.S. banks from holding reserves to dorsum private stablecoins. Previously, U.S. Treasury Secretarial assistant Janet Yellen urged the government to human action apace to establish a regulatory framework for stablecoins.