The House Subcommittee on Digital Assets has recently held a hearing, regarding the understanding of stablecoins' role in payments and the need for legislation. There were many financial experts, members of the crypto industry, including Representatives on the House financial services committee, discussing the matter, namely Rep. French Hill, R-Ark, Rep. Maxine Waters, Officer Adrienne A. Harris, Superintendent of the New York State Department of Financial Services, Dante Disparte, chief strategy officer and head of global policy at Circle, Austin Campbell, adjunct assistant professor of business at Columbia Business School, Jake Chervinsky, chief policy officer of the Blockchain Association and Delicia Reynolds Hand, director of financial fairness at Consumer Reports.
At the hearing, Representative Hill emphasized the importance of reaching an agreement between the Security and Exchange Commission (SEC) and the Commodity Futures Trading Commission ( CFTC ) in order to reduce uncertainty in regards to the utilization of stable coins in the market. Following Hill's statement, numerous inquiries raised regarding the impact of recent depegging incidents in the crypto industry and broader financial system.
Moreover, the issue of the commecial banks' closure was discussed, in the occasion of the Signature and Silvergate Banks’ recent collapses. Officer Adrienne A. Harris clarified that the Signature Bank's shutdown had noting to do with cryptocurrencies. Unlike the general belief, Signature Bank's deposits had little to do with cryptocurrencies, as only 20% of its clients' base was connected to crypto trading, while the majority were from various industries.
Considering all the evidence introduced at the hearing, Subcommittee members concluded that the stablecoin legislation needs to be passed in a timely manner before prolonged downturns.
Nevertheless, there is still a disagreement about what legislation should be introduced, due to some Democratic Representatives, namely Rep. Maxine Waters, objecting to the draft bill released last week, claiming that there are still unresolved conversations with Subcommittee Chair Hill. Rep. Hill reassured that further collaboration is welcomed in the stablecoin framework process.
Benjamin Anderson
- 2023-04-19
Understanding Stablecoin Legislation
The House Subcommittee on Digital Assets recently held a hearing in order to discuss the role of stablecoins in payments and the need for legislative regulation. Several financial experts and Representatives on the House Financial Services Committee gave their perspectives, such as Rep. French Hill and Rep. Maxine Waters, in order to reach a conclusion on the necessary legislation.
