- The U.S. Deputy Treasury Secretary emphasizes responsibility for foreign USD-based stablecoin issuers.
- Stringent procedures urged to prevent criminal misuse, citing the Binance settlement as a warning.
- Addressing the Blockchain Association, Wally Adeyemo warns against privilege without accountability.
The U.S. Treasury demands stringent measures from non-U.S. stablecoin issuers utilizing the U.S. dollar, warning against facilitating illicit activities.
Risks and Obligations for Foreign Stablecoin Issuers
Deputy Secretary of the Treasury, Wally Adeyemo, highlights the risks associated with non-U.S. stablecoin issuers backing their assets with the U.S. dollar. He stresses the obligation for these issuers to implement robust procedures preventing misuse by criminal entities, emphasizing that the privilege of using the U.S. dollar comes with responsibilities.
Accountability in the Binance Settlement Context
Adeyemo draws attention to the recent Binance settlement, citing it as a stark example of the consequences for those aiding criminals. He underlines the need for stablecoin providers to actively prevent terrorists from abusing their platforms and states, “We will find you and hold you accountable.”
Industry’s Lack of Action and National Security Risks
Referencing his 2022 speech, Adeyemo expresses disappointment in the industry’s failure to proactively prevent illicit activities. He warns that the lack of action by many firms poses a significant risk to national security and calls for a collective effort to address these concerns.
Conclusion
Deputy Secretary Adeyemo concludes with a clear message: the U.S. Treasury expects non-U.S. stablecoin issuers to uphold their responsibilities and prevent their platforms from being used for illicit activities. The industry is put on notice, and those intentionally neglecting legal obligations will face accountability.
