The United States House Committee on Financial Services will hold a hearing on April 19 to discuss the position of stablecoins as a means of payment and whether the ecosystem needs supporting legislation.
The committee issued a memorandum to announce an upcoming hearing titled: "Understanding the role of stablecoins in payments and the need for legislation." The hearing will include information compiled by various federal government agencies During the past year.
Participants set to testify at the hearing include Circle's chief strategy officer and head of global policy, Dante Disparte. Last month, on March 11, Circle's internal stablecoin offering, USD Coin (USDC), delinked from the US dollar after it revealed it had $3.3 billion of funds trapped in the collapsed Silicon Valley Bank (SVB).
2/ Like other customers and depositors who have relied on SVB for banking services, Circle joins calls for the continuity of this major bank in the US economy and will follow the guidance provided by state regulators and feds.
โ Circle (@circle) March 11, 2023
However, following a bailout of SVB depositors by the US government, USDC referred its value to the US dollar. During this timeline, the hackers managed to gain access to Disparte's Twitter account and began promote fake loyalty rewards to long-time users of USDC.
The committee's next hearing will focus on various stablecoins and their use in the payments landscape. Additionally, the committee will explore the need for stablecoin legislation based on their underlying collateral structures.
Related: Circle and BlockFi questioned about banking with SVB by Warren and AOC
Just a few days before the next hearing, a bill providing a framework for stablecoins in the United States it was published in the House of Representatives document repository.
Speaking about the bill, Circle CEO Jeremy Allaire said: "Clearly, there is a need for deep, bipartisan support for laws that ensure digital dollars on the internet are issued, supported and operated securely." .
As Cointelegraph reported, the draft further allows the US government to set standards for interoperability between stablecoins.
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