The US implementation of stablecoin regulation will once again make the dollar “relevant” around the world. This opinion was expressed by the former CEO of Binance.US Brian Brooks on CNBC.
From May 2020 to January 2021, Brooks served as Comptroller of the Trump administration. In the crypto industry, the manager was the chief legal officer of Coinbase from 2018 to 2020, led mining firm Bitfury, and served on the board of directors of broker Voyager Digital.
Brooks, who is now a partner at Valor Capital Group, disagreed with concerns about the potential threat to financial stability from stablecoins and the slowdown in the adoption of regulatory rules.
In countries with high inflation, there is a high need for dollar-denominated products to save money, he said. However, in many of these jurisdictions it is difficult to open a foreign currency account. In this situation, stablecoins could be “the best solution,” Brooks said.
“If the U.S. government put in place a structure to support dollars in stablecoins in a regulated way, that demand would flourish. This would favor the adoption of the American national currency throughout the world,” he said.
Payments giant PayPal launched a dollar-pegged “stablecoin” on August 7th. Congresswoman Maxine Waters expressed “deep concern” about the asset. She pointed to the lack of a regulatory framework.
As of 2022, the House of Representatives is considering a bill to regulate stablecoins. It was co-sponsored by Democratic Party representative Waters and Republican Patrick McHenry. In October, the latter stated that the discussion of the bipartisan document had reached an impasse. At the first hearings in 2023, the draft rules were again criticized.
In June, the faction of the Republican Party put forward its own version of the bill. Waters called it “poisonous and problematic”. She believes that the document has no chance of getting the support of the Democrats.
The need for regulation of stablecoins has previously been voiced by both the industry and the CEO Fed Jerome Powell.
“Demand [на стейблкоины] is a way for us to make the dollar relevant again at a time when governments around the world are seeking to shield themselves from it. This is indeed a very important political issue. It’s not about the cryptocurrency, it’s about the role the United States plays in the financial system,” Brooks concluded.
Recall that Bernstein analysts predicted an increase in the capitalization of the stablecoins segment from the current $125 billion to $2.8 trillion over five years.
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