According to reports of a G7 meeting issued by the U.S. Treasury Department, cryptocurrencies and stablecoins have been the subject of discussion at a meeting of senior national officials. In developments that indicate the growing profile of digital currency assets at the highest levels of government, finance ministers and central bank governors from across the Group of 7 countries discussed crypto-assets and their increasing role in the global financial system.
National authorities could implement crypto regulation to prevent illegal activities.
The discussion primarily focused on the global pandemic and the economic fallout from government-mandated restrictions. A readout from U.S. Treasury Secretary Steve Mnuchin indicated that the ‘evolving landscape of crypto assets’ and digital currency regulation came for discussion. According to the U.S. Treasury statement, discussions turned to how national authorities could implement crypto regulations to prevent the illegal use of cryptocurrencies and other digital assets. The senior officials also discussed ongoing responses to the evolving landscape of crypto assets and other digital assets and national authorities’ work to prevent their use for malign purposes and illicit activities.
Biden administration is likely to be supportive of cryptocurrencies.
The senior Democrats have appeared to indicate a change in political direction, apparently more restrictive on how digital assets can be used and should interact with the wider financial system. As reported earlier, Circle CEO Jeremy Allaire believes that the new Biden administration would be supportive of cryptocurrencies. While new regulation was already said to be in the works back in February 2020, according to the head of the U.S. Treasury, the installation of the new Presidential team is expected to bring more significant change to the Office of the Comptroller of the Currency and the broader U.S. approach to digital currency regulation.