Bloomberg Law
Dec. 23, 2020, 9:45 PM

U.S. Warns Crypto Stablecoins on Money Laundering, Risk Controls

Ben Bain
Ben Bain
Bloomberg News

Top U.S. financial regulators are warning firms behind an important part of the cryptocurrency market to tighten protections against money laundering.

At issue are so-called stablecoins that traders rely on to facilitate payments for digital tokens. In a Wednesday statement, the Treasury Department and other agencies said they should be used in a way that “effectively manages risk and maintains the stability of the U.S. domestic and international financial and monetary systems.”

Besides tightening the screws on illicit finance, operators of the coins should maintain adequate cash reserves, according to a statement released by the President’s Working Group on ...