Janet Yellen, the United States’ Treasury Secretary, met with Bank of Japan Governor Haruhiko Kuroda to discuss a number of multilateral financial regulatory issues, including stable coins.
According to the report, the Treasury Secretary also met with Japan’s finance minister, Shunichi Suzuki, to discuss both countries’ national currencies.
The US dollar has recently faced rising inflation, and the Japanese yen is trading at a more than two-decade low against the US dollar.
Meanwhile, Secretary Yellen met with Commissioner Nakajima Junichi of the Japan Financial Service Agency. The meeting concentrated on several topics, including “sustainable finance, crypto assets, and stable coins.”
The top officials confirmed that the US Treasury and Japan’s FSA would continue their bilateral and international collaboration.
Yellen is working on regulating stable coins
Since taking office, Secretary Yellen has consistently advocated for stable coin regulations. Recent events, such as Terra’s UST implosion, have strengthened her resolve to ensure proper oversight of this space.
She emphasized the “urgent need to ensure that stable coin arrangements are subject to a federal framework on a consistent and comprehensive basis.” at a meeting of the President’s Working Group on Financial Markets.
According to the US Treasury readout, Yellen emphasized the importance of legislative efforts to establish a regulatory framework for stable coins and “address current and future risks.”
Yellen also mentioned the urgent need to establish a regulatory framework for stable coins when she testified before the Senate Banking, Housing, and Urban Affairs Committee in May. In her testimony, she mentioned Terra USD and how it “illustrates that this is a rapidly growing product and that there are risks to financial stability and we need a framework that’s appropriate.”
To read our blog on “Banking circle now accepts USDC payments and converts fiat currency,” click here
