PWG Takes Tough Stand for Sweeping Stablecoin Structure, Holder, Stability Protections
Late Wednesday, the President’s Working Group on Financial Markets (PWG) issued yet another unprecedented U.S. policy statement, following one on MMF reform (see Client Report MMF16) just the day before with a statement from Treasury, the FRB, SEC, and CFTC on U.S. stablecoin policy.  As with the MMF paper, this statement establishes policy cleared with Janet Yellen and sure to guide the U.S. well into 2021 while the global framework most recently laid out by G7 finance ministers and central bankers advances.  Reflecting the FSB’s final stablecoin policy (see FSM Report CRYPTO14), the PWG for the first time expressly commits the U.S. to the  FSB’s “like-kind function, like-kind rule” construct deployed for global stablecoins such as Diem (once Libra).  However, the PWG goes on to adopt this framework for any stablecoin with a U.S. “nexus.”

CRYPTO16.pdf