A high-profile blockchain foyer group is urging United States lawmakers to undertake a “technology-neutral” strategy with regards to stablecoin regulation, arguing that dollar-pegged cryptocurrencies don’t pose a system danger to the monetary system.
In a 17-page letter addressed to the President’s Working Group on Monetary Markets, which incorporates regulators from the Division of Treasury and Federal Reserve, the Chamber of Digital Commerce outlined a six-point plan for future regulatory motion involving stablecoins.
In keeping with the group, stablecoin legal guidelines must be technology-neutral, regulate in a way that’s proportionate to danger, make sure that the U.S. maintains a aggressive benefit in blockchain, acknowledge stablecoins as digital cost programs versus investments, guarantee compliance with present Anti-Cash Laundering tips and be underpinned by a versatile, principles-based regime.
On the subject of know-how neutrality, the Chamber stated stablecoins “shouldn’t be topic to a brand new regulatory regime just because new know-how is being deployed,” including:
“New regulatory remedy for stablecoins ought to solely be invoked to the extent essential to mitigate distinctive dangers that aren’t at the moment addressed by the regulatory regime or to account for stablecoins’ potential to scale back danger or present new advantages.”
Established in 2014, the Chamber of Digital Commerce has an enormous membership spanning blockchain, conventional finance and the data know-how sector. Its government committee consists of Binance.US, Bitpay, BlockFi, Citigroup, BNY Mellon, Circle, BNP Paribas, Constancy Investments, Goldman Sachs, IBM, Mastercard, Visa and Microsoft, amongst others.
U.S. regulators try to tame the quickly rising stablecoin market, which has a collective worth of $130 billion on the time of writing. As Cointelegraph reported, the Biden administration is contemplating grouping stablecoin issuers in the identical class as conventional banks for the aim of regulation. Final month, Federal Reserve Chairman Jerome Powell stated the central financial institution has no intention to ban crypto, however that stablecoins require more stringent oversight.
As outlined within the letter, the Chamber of Digital Commerce believes that stablecoins are “already well-regulated on the state and federal degree.” A regulatory regime that conflates stablecoins with securities dangers “imposing an excessively inflexible” system that “stifles innovation.” The Chamber additional defined:
“To guard shoppers and cut back prices, we encourage the streamlining of state-level regulatory frameworks for stablecoins and the issuance of special-purpose charters by federal banking regulators for stablecoin companies7 searching for to function nationally.”