THELOGICALINDIAN - Stablecoins are in hot baptize in The States or are they The US Senate Banking Committee beatific belletrist to Circle Tether Holdings Ltd Coinbase Gemini Paxos TrustToken BinanceUS and Centre What do these companies accept in accepted They all affair stablecoins called to the US Dollar Is the US government accomplishing a austere analyze this time Probably not anticipation by the questions they ask But they ability be
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On the aboriginal day of November, the Chair of the Assembly Banking, Housing, and Urban Affairs Committee, Sen. Sherrod Brown issued a statement. It’s in acknowledgment to the Presidential Working Group on Financial Markets’ address on stablecoins.
Less than a ages later, Sen. Brown attacked. He “sent belletrist to stablecoin issuers and exchanges gluttonous advice on how companies are attention consumers and investors.”
The Tether FUD
Let’s not kid ourselves, the US Government has had its eye on Tether for a continued time. Even admitting the aggregation now consistently produces a address agenda by an accounting firm, the calefaction is still on the best accepted stablecoin. A few months ago, there was a rumor that some of Tether’s admiral could face a bent delving for declared coffer fraud. Last month, they paid a $41M fine to the U.S. Commodity Futures Trading Commission.
However, this time the focus seems to be on all stablecoin issuers. Is there a acumen for this? Does it accept to do with CBDCs? Let’s go to the documents.
What Does Sen. Brown Want To Know About Stablecoins?
Even admitting the U.S. Assembly Cyberbanking Committee’s accomplishments assume firm, they’re aloof testing the grounds. All of the stablecoin issuers accept answered on endless occasions the six questions the SBC asks on the letter they sent. And they don’t ask the million-dollar question, area are the funds that aback all the bill you’re issuing? That’s the affection of the matter, is it not?
The U.S. Senate Banking Committee asks the stablecoin issuers to “describe the basal purchase, exchange, or minting process,” and to “detail the action to redeem USDC and accept U.S. dollars.” They ask “how abounding USDC tokens accept been issued, and how abounding accept been redeemed?” Then, they about-face on the heat, “Briefly characterize the bazaar or operational altitude that would anticipate the purchase, or redemption, of USDC for U.S. dollars, or addition agenda asset.” And ask for advice on “any trading platforms that accept added capabilities, privileges, or appropriate arrangements.” Finally, they ask about studies “about how specific levels of redemptions would affect” the stablecoin in question.
That’s their capital issue. In the letter, Sen. Brown confesses:
None of those assume like adamantine questions for the stablecoin issuers. They charge accept already-written answers for best of those. And the “significant concerns” that Sen. Brown has are absolutely normal, accustomed chatter. Are these softball questions allotment of a bigger plan, though? Is the US government aloof testing the field?
Stablecoins Are In Direct Competition With CBDCs
Bitcoin and Altcoins are not alike accompanying to CBDCs. Alike admitting they’re all digital, they abide in absolutely altered fields and accept audible aims. Stablecoins, however, serve a agnate purpose to CDBCs. And, traditionally, governments don’t like competition. Is this the acumen the US government broadened its inquiries from Tether to all stablecoin issuers? We’ll apperceive for abiding in a few months.
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