The CFTC Global Markets Advisory Committee advanced recommendations on: (i) the use of U.S. Treasuries as margin collateral, (ii) the securities market's move to T+1 securities settlement and (iii) a digital asset taxonomy.
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In a working paper titled "Digital Currency and Bank Sector Stability," the Office of Financial Research found that when banks face financial friction, a central bank digital currency and other types of stablecoins would likely contribute to financial instability and increase the chances for banking sector crises and financial system distress.
A researcher from the Office of Financial Research analyzed the potential threats that decentralized finance poses to financial stability if its growth continues without the guardrails of traditional finance.
Senate Finance Committee Chair Ron Wyden (D-OR) asked six cryptocurrency exchanges to provide information on their respective asset protection policies.
In extensive comments, the GFMA, FIA, the Institute of International Finance, ISDA, the Bank Policy Institute, the International Capital Markets Association and the Financial Services Forum expressed support for the Basel Committee on Banking Supervision design of a prudential framework for the treatment of cryptoasset exposures.