Regulating stablecoins is essential for the U.S. and the dollar to remain competitive in the global monetary landscape. Denelle Dixon, the CEO and Executive Director of the Stellar Development Foundation is optimistic that the U.S. regulatory framework for stablecoins will be implemented by the end of this year. Dixon believes that this focus should be more on the utility and value of the stablecoins rather than on the technical aspects. Stablecoins are the second largest crypto asset class, representing 10.5% of the entire crypto market capitalization with a circulation of over $133 billion. The leading stablecoin, Tether (USDT), dominates the sector with a market share of over 60%, having issued $14 billion in USDT so far this year with a circulation of $80 billion. Circle’s USD Coin (USDC) and Binance’s Binance USD (BUSD) have declined this year, but they are also expected to play a role in future stablecoin regulations. Ultimately, regulations on stablecoins will help ensure the U.S. dollar remains to be a primary international reserve currency. Such a move should in end increase consumer protection, reduce the likelihood of market manipulation, and strengthen the dollar economically. This will not only benefit the United States, but cryptocurrency users throughout the world.
Connor Jimenez
- 2023-04-12
Regulations on Stablecoins a Must For U.S. Dollar
Denelle Dixon, of the Stellar Development Foundation, believes U.S. regulatory framework for stablecoins can be implemented by the end of 2020. Regulations on stablecoins will aid the U.S. dollar’s presence as a global reserve currency and benefit cryptocurrency users across the world.
