The United States House of Representatives Committee on Financial Services will hold a hearing on the regulation of stablecoins on April 19. The audience follow the ad of a new bill in the House to provide a framework for regulating stablecoins. Some of the guest speakers have released advance transcripts of their intended testimony.
Stablecoins โare a lot like pretty basic cash instruments. [โฆ] Stablecoins are actually mundane,โ Austin Campbell, managing partner at Zero Knowledge Consulting and an adjunct professor at Columbia Business School, will tell the committee. Campbell is convinced that stablecoins will broaden the reach of the US dollar and increase financial inclusion if legislation does not derail their progress.
According to Campbell, the United States has a lot to lose by driving away stablecoin issuers:
โThe biggest winner from US regulatory actions and legislative inaction over the past year has been Tether, an offshore stablecoin that provides very little transparency or consumer protection.โ
Blockchain Association director of policy Jake Chervinsky will call the stablecoin โa revolutionary upgradeโ to traditional payment systems. Like Campbell, Chervinsky touts dollar-denominated stablecoins to increase financial inclusion and preserve the role of the dollar in the international economy.
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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's hard to interpret a stablecoin as a security, Chervinsky said, and the CFTC lacks jurisdiction to oversee spot markets.
Absolutely sensational testimony of @CampbellJAustin who will testify at the House hearing on stablecoins tomorrow. Probably the best paper I've ever read arguing that stablecoins are in US interests. https://t.co/kuQcTR9sCk
โ nic c4rter (@nic__carter) April 18, 2023
Stablecoin legislation should eliminate competition between regulatory agencies, Chervinsky said:
โAt the federal level, stablecoins should be supervised by a prudential regulator like the Fed or the OCC. [โฆ] Stablecoins should also be exempt from overlapping federal regulation by the SEC or CFTC, in order to provide regulatory clarity and a clear line of liability between agencies."
New York State Department of Financial Services Superintendent Adrienne A. Harris, Circle Chief Strategy Officer and Global Policy Head Dante Disparte and Consumer Reports Director of Financial Equity Delicia Reynolds Hand will also testify earlier of the audience.
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