During a recent congressional hearing on stablecoins, representatives from traditional financial institutions, including a senior executive from the Bank of New York Mellon (BNY Mellon) and a lawyer from Davis Polk & Wardwell, expressed support for stablecoin regulations. The lawyer, Randy Guynn, argued that stablecoin issuers should be subject to safeguards similar to those imposed on banks. Caroline Butler, the global head of digital assets for BNY Mellon, emphasized the need for clarity from the U.S. government and the importance of protecting client assets. The sentiment for stablecoin regulations is coming from more traditional corners of finance, and it aligns with the increasing political influence of the crypto industry in Washington. While the debate on stablecoins continues, there is also legislation being considered that would ban the creation of a U.S. central bank digital currency (CBDC), with Republicans campaigning against it. Overall, the hearing shows a shift from discussing whether to regulate stablecoins to how to regulate them.



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