On Wednesday, U.S. Deputy Secretary of the Treasury Wally Adeyemo issued a stern warning regarding the potential risks associated with non-U.S. stablecoin issuers relying on the U.S. dollar as their backing. Adeyemo asserted that foreign stablecoin issuers must establish robust procedures to prevent malicious actors from exploiting their stablecoins. Furthermore, he argued that these entities should not benefit from the privilege of utilizing the U.S. dollar without bearing the responsibility of implementing measures to thwart terrorists from misusing their platforms. In his own words:
“We cannot allow dollar-backed stablecoin providers outside the United States to have the privilege of using our currency without the responsibility of putting in place procedures to prevent terrorists from abusing their platform.”
US Treasury Takes Stand, Demanding Responsibility from Non-U.S. Stablecoin Issuers
The Deputy Secretary of the Treasury reportedly addressed this matter during a speech scheduled for a Blockchain Association event in Washington D.C.
Adeyemo also referred to a speech he delivered in 2022, highlighting the industry’s imperative to proactively adopt measures preventing the use of virtual assets by transnational criminal organizations, terrorists, and rogue states. Expressing disappointment, he remarked that, in his opinion, the industry has not adequately fulfilled these objectives. He emphasized the clear and present risk to national security posed by the lack of action from many firms, both large and small, despite some responding to calls for preventive measures.
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