Lawmakers and industry experts gathered for a hearing by the US House Committee on Financial Services to discuss the importance of US dollar-backed stablecoins in the financial system and the need for a regulatory framework. The hearing also addressed concerns about central bank digital currencies (CBDCs). French Hill, Chairman of the House Financial Services Committee, argued that stablecoins foster competition and innovation and criticized the concentration of financial power that a CBDC would bring. Several representatives highlighted the potential benefits of stablecoins for simplifying the US payment system and maintaining the US dollar's dominance. The hearing emphasized the need for regulatory clarity to ensure stability and adoption of stablecoins. The STABLE Act, which regulates stablecoins, was a central topic of discussion. The act proposes various oversight requirements, including full backing by US dollars or approved assets, public redemption policies, and banking-like supervision of issuers. The hearing also addressed the role of stablecoins in financial inclusion, highlighting their potential to provide access to digital dollars for unbanked individuals. Banks also expressed an interest in participating in the stablecoin ecosystem to provide trust and confidence.



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