TechFlow news, October 14 — According to LedgerInsights, Nellie Liang, Under Secretary of the U.S. Department of the Treasury, recently delivered a speech calling for federal-level regulation of non-bank payment providers, rather than the current state-by-state oversight. This proposal would cover all money transmitters, e-money firms, and stablecoin issuers, potentially significantly impacting major stablecoin issuers currently regulated by the New York State Department of Financial Services (NYDFS).
Liang noted that the existing state-based regulatory framework originated in the era of physical cash and is no longer suitable for today's digital payment environment. She emphasized that as users increasingly hold large amounts of funds over extended periods within digital applications—especially in the form of stablecoins—significant differences among states' rules on how these funds can be invested have created regulatory gaps.
