Statement from the Chamber of Digital Commerce on the release of the President’s Working Group (PWG) on Financial Markets “Report on Stablecoins”

November 1, 2021

“We are pleased to see that The President’s Working Group (PWG) report notes the important role stablecoins can play in faster, more efficient and resilient payment systems, and the need for a transparent and open process in developing policies for these emerging innovations, which is a reflection of the position we have held at the Chamber for many years.

The Chamber recently submitted to members of the PWG a letter detailing our recommendations for the regulatory treatment of stablecoins, including our view that stablecoins do not pose systemic risk to the financial system and are not securities.

That said, the Chamber has concerns regarding some of the report’s recommendations, such as prioritizing the Securities and Exchange Commission’s role over payments products, allowing multiple agencies to assert regulatory jurisdiction over stablecoins without specifying each agency’s role, and prescriptive Financial Stability Oversight Council (FSOC) policies, including considering designating certain activities as systemically important. Such actions could chill payments innovation during a crucial time when the United States should be encouraging innovation and adoption, and asserting leadership in the global digital asset marketplace.

The Chamber believes in the importance of a collaborative, bottom-up approach to setting a policy framework. In particular, the Chamber believes that this process should include input from the many state regulatory bodies that have first-hand experience in shaping successful policies for stablecoins. We appreciate the PWG’s engagement on this issue, and we look forward to engaging with the Biden Administration and policymakers in encouraging greater understanding of the stablecoin ecosystem and shaping policies that will serve consumers, investors and innovators well.”