Last week US Treasury Under Secretary Nellie Liang gave a speech in which she argued that non bank payment providers should be regulated at the federal level rather than the state level. She was including all money transmitters, e-money firms and stablecoin issuers. Today the New York State Department of Financial Services (NYDFS) is the regulator of the largest stablecoin issuers.
The Treasury previously raised this point as part of its 2022 paper on the future of payments which delved into a potential CBDC. The question is whether this proposal will have the level of backlash that the retail CBDC attracted.
Ms Liang made some strong points. She argued that the idea of regulating money transmitters at the state level was based on physical cash, where someone would go to a local money exchanger to send cash to someone in another state. A key point is the money transmitter wouldn’t hold the cash for very long.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
