At the hearing in the Senate for the StableCoin Ordinance, contradictory views appear
At the hearing in the Senate for the StableCoin Ordinance, contradictory views appear
- The Senate banking committee held a hearing on Tuesday to discuss the edition, use and risks of stable coins.
- legislators and witnesses had contradictory thoughts on the advantages and risks of digital assets and, above all, their regulation.
US senators and experts with knowledge of stable coins in a hearing from the Senate's banking committee have expressed different views to regulate stable coins.
The hearing on Tuesday was entitled: "Stable coins: How do you work, how are you used and what are your risks?" Among those present were the following experts: Hillary Allen, Professor at the American University Washington College of Law, Alexis Goldstein, director of financial policy at Open Markets, Jai Massari, partner at Davis Polk and Wardwell, and Dante Dispafte, Chief Strategy Officer and Head of Global Policy at Circle. The Senators Sherrod Brown, Elizabeth Warren and Patrick Toomey were among the MPs present.
StableCoin regulation is "impractical" and "unnecessary"
in written statement, Goldstein said Decentralized financial projects (Defi) are "largely not in accordance with different regulations. This includes Know your Customer (KYC), Anti-Money Lundering (AML), Countering The Financing of Terrorism and current US sanctions. In their opinion, the lack of this made stable coins usable to convert ransomware payments from a cryptocurrency into another.
While Massari agreed to the need for supervision, she was of the opinion that the legislator should consider taking stable coin emitters after a "new and well-designed Bundescharta". Returning these players like an FDIC-insured bank is "impractical" and "unnecessary". To her defense, she said that StableCoin companies were already able to manage their own risk. This includes short -term reserves with liquid funds that correspond to the number of outstanding stable coins.
The legislator asked to support innovations and "not to damage any damage"
Meanwhile, Disparte, the only witness with a direct connection to a stable coin issuer, highlighted the positive effects of digital assets. This included strengthening women and entrepreneurs from minorities and providing help. He pointed to a change in the regulatory approach of stable coins. However, he asked the legislator to promote innovations and "not to harm" the industry.
Senator Toomey repeated the view of disputes and said that stable coins increase the transaction speed, lower transaction costs and improve access to payment systems. Regulation should be introduced to address financial risks and consumer protection, but these should not suffocate innovations in the global digital economy, he added.
the last witness, all, did not seem as optimistic as the others. She believed that stable coins are a "real threat to financial stability" in the United States. They could grow to displace enough US dollars, which restricts the ability of the Fed to react to inflation.
"This is another reason to avoid guidelines that promote the growth of stablecoins," she added.
in a similar way, Senator Warren called for digital assets. They "support one of the dodgy parts of the cryptocelt - defi - where consumers are least protected against fraud," she said.
related: US senator Elizabeth Warren demands quick regulatory measures to crypto
Senator Brown agreed and said that stable coins were neither decentralized nor transparent and they risked losing the money of all investors. He called the digital coins "wild financial speculation" and added that blockchain technology would never "democratize money".
These opposite views come at a time when the StableCoin emittent Tether is confronted with his second class action this year. The allegations that were previously raised are a wrong representation of the stablecoin support.
Source: Crypto-news-flash.com
Kommentare (0)