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Members of the US House of Representatives question the competence of the experts drafting the law to oversee stablecoins.
Minnesota Republican Tom Emmer at an event held by analytical company Chainalysis on December 6 opposed the decision of the US Presidential Working Group, which proposed to Congress a law allowing only insured financial institutions to issue stablecoins.
“To put it bluntly, regulation of stablecoin issuers will kill American competitiveness. Most of the members of the working group do not understand stablecoins and the rapid adoption of legislation can actually lead to disaster. “
Emmer opposed stablecoin regulation. In his opinion, there is already oversight of issuers at the level of several states, including New York and Wyoming. The congressman noted that his attitude towards the regulation of stablecoins does not speak against the supervision of the industry as a whole. Creating a “lightweight regulatory framework,” starting with the definition of terms such as “currency,” “commodity,” and “security,” he said, can foster innovation in the industry.
The MP also said that the establishment of regulatory boundaries between the Commodity Futures Trading Commission (CFTC) and the US Securities and Exchange Commission (SEC), which are trying to capture as much of the area of responsibility in the regulation of the crypto industry as possible, will help curb the “dangerous practices” of regulators enforcement measures.
It is curious that the Republican was also supported by the deputy of the Democratic Party from the state of Connecticut Jim Himes. He stated that not everyone will obey the law.
“You shouldn’t think that we will definitely follow the recommendations. I am skeptical about the idea that all stablecoin issuers should be banks. “
Himes echoed Emmer’s statement about the incompetence of the working group. This fact, in his opinion, is causing growing concern in the crypto industry.
Recently, stablecoins have raised concerns among the US authorities, even more than cryptocurrencies. In October, FED Board Member Christopher Waller said that the evolution of the stablecoin market could no longer be ignored. In his opinion, they can be issued by banks and technology companies, but for this it is necessary to work out a clear regulation of stablecoins.
Last month, Senate Banking Committee Chairman Sherrod Brown sent letters to major stablecoin operators demanding clarification on how stable cryptocurrencies work. US Treasury Secretary Janet Yellen said this month that stablecoins can improve efficiency and facilitate payments, but require proper regulation.
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