Fitch Ratings seeks to regulate stablecoins

by in Cryptocurrency News

Fitch Rating

Analysts at the Fitch rating agency urge the European Union and the United States to seriously engage in the development of a regulatory framework for stablecoins.

If states can control the movement of funds in digital assets, then they will reduce the risks of financial destabilization, the agency said in a report. The European Union is currently one of the first to publish draft regulations for stablecoins.

The US is also moving in this direction. First of all, it is necessary to create conditions under which banks and other financial institutions can freely use fiat-backed tokens. That will prevent the clandestine use of such coins.

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Almost all stablecoins are pegged to the US dollar, so the US authorities need to focus on developing legislation for such instruments. That will ensure the transparency and liquidity of each virtual asset tied to the US currency, according to Fitch analysts.