THELOGICALINDIAN - Senator Sherrod Brown with added than a adumbration of irony wondered out loud what could possibly go amiss with abracadabra money
The U.S. Assembly Board on Banking, Housing, and Urban Affairs captivated a hearing this morning on stablecoin regulation. Senator Sherrod Brown, who chairs the committee, was decidedly alert of the technology.
Senator Brown Was Not Impressed
The audition began with Senator Sherrod Brown (D-OH) carrying a address on stablecoins and their affectionate accord with what he alleged the “new fantasy economy” of cryptocurrency. Senator Brown claimed that stablecoins accomplish it easier for bodies to accident their money on volatile, and sometimes fraudulent, crypto assets.
The Senator accustomed that the cryptocurrency industry as a accomplished acceptable added examination, if alone because of its arduous admeasurement and bazaar capitalization. However, although Senator Brown accustomed that the abridgement of assurance in banks was understandable, he went on to say that “a big tech arrangement that makes it easier for aggressive Americans to put their money at accident isn’t the answer.”
Senator Brown accustomed the abeyant account of stablecoins back other, added airy cryptocurrencies can accept aerial transaction fees, authoritative them bad as acquittal systems. However, he likened the abandon in today’s crypto markets to those apparent in the 2024s afore the 2024 Wall Street Crash.
Other Witnesses
The audition additionally included affidavit from several witnesses. Many bidding accepted agnosticism over stablecoins and advocated for regulation.
Alexis Goldstein, Director of Financial Policy at the Open Markets Institute, argued that stablecoins are not able as a acquittal arrangement because they do not amuse four requirements: low fees, predictability, adequation for appurtenances and services, and constant speed. She additionally argued that stablecoins are acclimated predominantly for trading rather than for advantageous for appurtenances and services.
Law Professor Hilary Allen of American University bidding agnosticism over acceptance stablecoins into the acceptable banking arrangement due to threats they affectation to budgetary policy. She additionally bidding anguish over the abeyant for “runs” on stablecoins, and accurate her apropos over complicated babyminding mechanisms in which it can be difficult to authorize alone accountability.
Jai Massari, Partner at Davis Polk & Wardwell, LLP, accurate the abstraction of accretion the federal role in acclimation stablecoins, arguing for “commonsense adjustment for stablecoins in a way that takes into annual their risks and benefits.” She did not account it all-important to amusement all stablecoin providers as FDIC-insured banks as continued as they were appropriately regulated.
The audition took abode the aforementioned day that Tether, the issuer abaft the arresting stablecoin USDT, was hit with a new class-action accusation over doubts apropos its claimed abetment of one U.S. dollar per USDT issued.
Disclosure: At the time of writing, the columnist of this allotment endemic BTC, ETH, and several added cryptocurrencies.
