The Blockchain Association’s director of government relations, Ron Hammond, noted that the US Congress might postpone its discussion of stablecoin regulation a bit, due to the upcoming election, so there would be “ concrete action ” until 2023.
The manager stated the following at a conference in Palm Beach:
“Congress likes to do things in bite-sized pieces instead of making the cake. I think we're going to see a more tailored bill on single fiat-backed stablecoins and then algorithmic stablecoins in the future, because no one has an answer right now.”
US stablecoin regulation necessary after Terra crash
On May 13, the pro-crypto commissioner of the United States Securities and Exchange Commission (SEC), Hester Peirce, revealed that in the wake of the fall of Terra (LUNA), the commission will accelerate a regulation for stablecoins and could even set “stricter rules”.
Read also: US Regulator OCC Says Banks Can Make Payments in Stablecoins
For the commissioner, the fall of Terra was important enough for the SEC to speed up regulation, so stablecoins will be the first segment of cryptocurrencies to have regulation, so regulators are working "faster" to introduce a new legal framework.
The director of the Blockchain Association highlighted that there are already draft laws, but not in their final version, since they focus on stablecoins backed by fiat money.
“Now everyone is saying how the hell do we have a framework for [algorithmic stablecloins], and I think that's still being debated now. I use the parameter of reading a script [to determine] who is knowledgeable and who has a staff that is knowledgeable. This year especially, it's gone from being mostly a staff-driven issue to members of Congress personally saying, 'I've got this, staff, don't worry.'”
Ron Hammond argued that Congress is now rethinking its initiatives, which did not contemplate algorithmic stablecoins , and that legislators are even "scratching their heads", since that segment of cryptocurrencies is the smallest, but the one that generated echo in the world.
He emphasized that lawmakers could leave out the topic of stablecoins, since it is not such a relevant topic for the American audience, and that lawmakers prefer to focus only on cryptocurrencies; however, he predicted that by 2023 there could be "an explosion" of bills.
Read also: ECB Official Says Stablecoins Pose Broad Policy Risks
Days ago, in a letter addressed to the Federal Reserve (FED), members of the Republican Party highlighted the benefits that the use of stablecoins brings. Signed on May 18 by the 24 party members of the US House Financial Services Committee, the letter is addressed to Fed Chairman Jerome Powell.
Think we missed something? Let us know in the comment section below.