The Washington Post: In late October, the U.S. Department of the Treasury will release a stablecoin regulatory report, USDT and USDC to be regulated similarly to banks.

According to The Wall Street Journal, the $130 billion stablecoin market in the United States, which includes issuers such as USDT (Tether) and USDC (Circle), may soon be subject to U.S. banking-style regulations. The President's Working Group on Financial Markets, led by the Treasury Department, is set to release a stablecoin report at the end of October.

According to the Wall Street Journal, the stablecoin market in the United States, valued at $130 billion, including stablecoin issuers such as USDT Tether and USDC Circle, may soon be subject to regulatory oversight in a manner similar to banks. The President's Working Group on Financial Markets, led by the Treasury Department, is set to release a stablecoin report at the end of October.

A senior government official confirmed that the report from the Wall Street Journal is accurate, and the federal government is considering two different approaches to regulation. The first is through Congress, and the second is via the Financial Stability Oversight Council (FSOC), a regulatory agency group responsible for monitoring potential risks in the financial system.

Dante Disparte, Chief Strategy Officer at Circle, expressed through a spokesperson that this is encouraging news because "Circle has been working to become a nationally chartered full-reserve commercial bank, and we believe that the full-reserve banking model based on digital currency technology can bring a more efficient, fair, inclusive, and flexible financial system."

Wedbush Securities analyst David Chiaverini stated that this news bodes well for Facebook's Diem, "We believe Diem should receive approval from regulators shortly after regulations are established."

In August, Circle expressed its aspiration to become a nationwide crypto bank, and Paxos, in partnership with Binance, received conditional bank charters for USDP (formerly PAX) and BUSD in April.

Senator Cynthia Lummis, a supporter of cryptocurrencies, expressed concerns about the lack of transparency in the reserves supporting stablecoin issuance and called for regular audits of stablecoin issuers. Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), indicated that under U.S. law, stablecoins may be classified as securities, subjecting them to additional regulation.

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