After the Terra crash erupted last month, all the focus was on stablecoins. Many people called for regulatory control over this category of cryptocurrencies. On Wednesday, a step forward on stablecoin regulation came in the form of regulatory guidance from a New York regulator.
Foundational Criteria For Regulating Stablecoins
Adrienne Harris, superintendent of the New York state department of financial services (DFS) issued new regulatory guidance in this regard. The guidance sets foundational criteria for U.S. Dollar backed stablecoins issued by DFS-regulated entities.
Harris said in a statement,
“Since DFS approved the first USD-backed stablecoins for issuance in New York in 2018, our regulated entities have had to meet conservative reserve requirements and provide routine attestations to protect consumers and ensure the stability of the coins issued.”
She explained that the guidance creates criteria for virtual currency companies looking to issue USD-backed stablecoins in New York. The aspect of stablecoin’s full support of a reserve of assets has been stressed upon in the regulatory guidance.
