Amid growing concerns about the future of the stablecoin sector, Corey Tan, Vice President of Global Policy at Circle, remains optimistic.
A spokesman for the issuer of the world’s second-largest stablecoin, USD Coin (USDC), noted that changes in US legislation could benefit providers of this service.
One reason for the optimism is the recently published stablecoin bill from the US House of Representatives Financial Services Committee.
The proposed legislation obliges issuers to maintain reserves to back their coins. This should provide greater stability and reliability.
The bill could also allow stablecoin issuers to keep a portion of their reserves at the US central bank. According to Ten, this will give his company the opportunity to create the most reliable stablecoin in the world.
In an exclusive interview with Forkast, the specialist noted that “the changing landscape of cryptocurrency regulation in the United States” should significantly affect this market.
He stressed that people need USDC because they use US dollars (USD) all over the world. The demand for such assets is in countries with hyperinflation or governments that have lost the trust of citizens.
According to Tan, the stablecoin bill actually aims to protect the rights of consumers. It is designed to solve many problems and eradicate unscrupulous market participants, especially companies registered in offshore zones.
Previously, they caused serious losses for investors and undermined confidence in the global cryptocurrency industry. Finally, according to Ten, the US dollar makes up about 57% of the world’s foreign exchange reserves.