U.S. Treasury Official Warns Against Non-U.S. Stablecoin Issuers

A top official from the U.S. Department of Treasury expressed concern at the dangers of non-U.S. Stablecoin issuers that use dollar backing, arguing they need to address their use by bad actors.

Deputy Secretary of the Treasury Wally Adeyemo said on Wednesday:"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."

"While some have heeded our calls and taken steps to prevent illicit activity, the lack of action by too many firms – both large and small – represents a clear and present risk to our national security," Adeyemo said.

"I want to directly address those within the digital asset industry who believe they are above the law, those that willfully turn a blind eye to the law, and those that promote assets and services that aid criminals, terrorists, and rogue states," he said. "My message is simple: We will find you and hold you accountable."