The U.S. Treasury announced Friday the President's Working Group on Financial Markets, a new interagency entity, will discuss stablecoins at a July 19 meeting.

Treasury Secretary Janet Yellen is convening the group of major regulatory agency heads in order to examine stablecoin rules and risks and make policy suggestions. She said the meeting would help protect users, markets, and the financial system from the risks of stablecoins, while still enabling the U.S. to "assess the potential benefits": "In light of the rapid growth in digital assets, it is important for the agencies to collaborate on the regulation of this sector and the development of any recommendations for new authorities."

Potential stablecoin risks include end user rights, know-your-customer and anti-money laundering matters, market integrity, and monetary stability. Besides Yellen, Federal Reserve Chairman Jerome Powell, Securities and Exchange Commission Chair Gary Gensler, and Commodity Futures Trading Commission Acting Chair Rostin Behnam will attend the meeting. The Working Group aims to publish its written recommendations.

Here is the rest of the week in review:

Terraform Labs said it has raised $150 million from several major crypto investors, including Arrington XRP Capital, Pantera Capital, Galaxy Digital, and BlockTower Capital. The Korean firm behind the Terra blockchain will use the fresh capital to fund the Ecosystem Fund, which is used to sponsor projects built on Terra, over 2 years. CEO and founder Do Kwon said: "We're thrilled to have the continued support of many long-time, early investors in the Terra ecosystem." Terra is a Tendermint-based blockchain that deploys a number of stablecoins based on its dollar-pegged TerraUSD (UST). Terra uses an algorithm to maintain a steady value for UST and its derivatives, incentivizing traders to buy excess supplies of UST in exchange for Terra's native governance token LUNA. Earlier this year, Pantera Capital and Coinbase Ventures (COIN  ) participated in a $25 million funding round to help Terraform Labs build more UST-backed applications, like popular mobile payments decentralized app CHAI with over 2.5 million South Korean users. The explosion of DeFi has led to investors to search for a truly decentralized stablecoin that is scalable.

The European Central Bank announced Wednesday it is working to create a digital euro (EUR) currency. ECB President Christine Lagarde said: "Our work aims to ensure that in the digital age citizens and firms continue to have access to the safest form of money, central bank money." The new project is expected to take 2 years with the aim to design a digital version of the currency used by the euro zone. But the central bank's actual implementation of the digital euro could take another 2 years in addition to the design and investigation stage. In March Lagarde projected a timeline of at least 4 years for full implementation of a digital euro. The new digital euro would allow E.U. consumers to pay electronically, without banknotes or coins. It would complement the existing monetary system instead of replacing physical cash or erasing commercial lending.

Crypto prices fell to $1.29 trillion this week amid more selling. For the majors, all ended in the red. In the top 100, the biggest losers were THORChain (RUNE), down 31%, Synthetix (SNX), down 29%, and Telcoin (TEL), down 25%. The biggest gainers were NEM (XEM), up 17%, Ravencoin (RVN), up 13%, and OKB, up 10%. Next week traders will watch if Bitcoin (BTC) breaches the key $30,000 level.

The author owns a small amount of BTC.