U.S. Treasury Secretary Janet Yellen met with Bank of Japan Governor Haruhiko Kuroda to discuss several multilateral financial regulatory issues, including stablecoins, Reuters reported.
According to the report, the Treasury Secretary also met Japan’s finance minister, Shunichi Suzuki, to discuss the national currencies of both countries.
The U.S. dollar has recently been faced with increasing inflation, and the Japanese yen is trading at over two decades low against the dollar.
Meanwhile, Secretary Yellen met with the head of the Japan Financial Service Agency, Commissioner Nakajima Junichi.
The meeting focused on several issues, which included “sustainable finance, crypto assets, and stablecoins.”
The top officials confirmed that the U.S. Treasury and Japan FSA would continue to collaborate bilaterally and internationally.
Yellen working on stablecoin regulation
Secretary Yellen has consistently called for stablecoins regulations since she assumed office.
Recent events like the implosion of Terra’s UST have strengthened her resolve to ensure proper oversight of this space.
In a meeting of the President’s Working Group on Financial Markets, she emphasized the “urgent need to ensure that stablecoin arrangements are subject to a federal framework on a consistent and comprehensive basis.”
The U.S. Treasury readout reported that Yellen mentioned the importance of legislative efforts to create a regulatory framework for stablecoins and “address current and future risks.”
When she appeared before the Senate Banking, Housing, and Urban Affairs Committee in May, Yellen also mentioned the urgent need to establish a regulatory framework for stablecoins.
In her testimony, she mentioned Terra USD and how it “illustrates that this is a rapidly growing product and that there are risks to financial stability and we need a framework that’s appropriate.”
Crypto firms with Russian links
The U.S. government specifically mentioned that Japan should shut down firms operating in the Irkutsk region in Siberia.
According to the U.S. government, the move is to ensure that Russia does not evade sanctions through these firms.