The United States House Committee on Financial Services will hold a hearing on stablecoin regulation on April 19. The hearing follows the announcement of a new bill in the House to establish a regulatory framework for stablecoins. Some of the guest speakers have released advance transcripts of their intended testimony.
Stablecoins “are a lot like fairly basic cash instruments. […] Stablecoins are really mundane,” Austin Campbell, managing partner at Zero Knowledge Consulting and an adjunct professor at Columbia Business School, will tell the commission. Campbell is convinced that stablecoins will broaden the reach of the US dollar and increase financial inclusion if the legislation does not derail your progress.
According to Campbell, the United States has a lot to lose if it scares away stablecoin issuers:
“The biggest winner from US regulatory action and legislative inaction over the past year has been Tether, a foreign stablecoin that offers very little transparency or consumer protection.”
Jake Chervinsky, Policy Officer at the Blockchain Association, will call stablecoins a “revolutionary upgrade” to traditional payment systems. Like Campbell, Chervinsky believes that dollar-denominated stablecoins increase financial inclusion and preserve the role of the dollar in the international economy.
Neither the Securities and Exchange Commission (SEC) nor the Commodity Futures Trading Commission (CFTC) currently have the necessary regulatory authority to regulate stablecoins, Chervinsky argued. It is difficult to interpret stablecoin as a security, Chervinsky said, and the CFTC lacks jurisdiction to oversee spot markets.
Absolutely sensational testimony from @CampbellJAustin who will be testifying in the House hearing on stablecoins tomorrow. Probably the single best document I’ve read that makes the case for stablecoins as favorable to US interests https://t.co/kuQcTR9sCk
— nic c4rter (@nic__carter) April 18, 2023
Stablecoin legislation should follow the elimination of competition between regulatory agencies, Chervinsky said:
“At the federal level, stablecoins should be overseen by a prudential regulator like the Fed or the OCC. […] Stablecoins should also be exempt from overlapping federal regulation by the SEC or CFTC, in order to provide regulatory clarity and a clear delineation of responsibilities between agencies.”
New York Department of Financial Services Superintendent Adrienne A. Harris, Circle Chief Strategy Officer and Global Policy Officer Dante Disparte and Consumer Reports Director of Financial Fairness Delicia Reynolds Hand will also testify before the hearing. .
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