Senior Republicans warned the fast-growing stablecoin industry and warned that “bad things will happen” to investors’ money, unless soon regulated.
Pat Toomey, a top Republican member of the Senate Banking Commission, thought Congress should write new rules for the $ 180 billion market for stablecoin, one of the world’s most popular cryptocurrencies. Said.
But he believes that stablecoin is now worth so much money that their operators should be regulated like banks, some of the tougher measures being promoted by Democrats. I opposed it.
Toomey told the Financial Times in an interview: absolutely. Is that a bad thing? Yes, that would be bad for those consumers. That would probably be a big setback for the industry.
“For both of these reasons, I would like to introduce a wise framework before anything bad happens. And let’s face it. Eventually, some bad things will happen. After all. By the way, this is still a relatively new technology. “
Stablecoin, unlike other cryptocurrencies such as Bitcoin and Ethereum, is backed by real currencies, providing investors with the opportunity to own digital assets and increasing price stability.
Financial regulators are concerned about how fast cryptocurrencies are growing, how many are in circulation, and how unclear the assets that support them.
According to CoinMarketCap, the most popular coin, Tether, has grown from a market capitalization of about $ 4 billion in early 2020 to $ 83 billion today.Regulators have previously fined the company Tens of millions For making false claims about it Reserve.. Currently, it has sufficient reserves equivalent to 100% of the issued coins.
The Biden administration wants to limit the market so that only domestically regulated financial institutions can issue stablecoins. This is a rule that excludes both tether and the two largest issuers, USD coins.
However, Toomey’s bill also allows you to provide coins if other organizations publish monthly reserves and submit them to audits every three months.
“The idea that authorized issuers should insure depositors is too restrictive,” Toomey said. “There is no logical reason in the world that you have to be an insured depositor to do this.”
The move to regulate Stablecoin is part of a broader push for both Democrats and Republicans to introduce rules across the crypto industry. But Republicans have argued that many cryptocurrencies should be regulated in the same way as securities, with some of the tougher proposals from senior Democrats such as Securities and Exchange Commission Chairman Gary Gensler. I’m resisting.
Toomey attacked Gensler and said: This is not a way to handle new technologies. “
He was also critical of Democrats for trying to use the Federal Reserve to accelerate the transition to green energy.
Toomey was one of the Senators. Helped the block Sara Bloom Ruskin was appointed to the Fed’s board after challenging her call to regulators to take climate change into account when considering economic risks.
“Here in the United States, there is a move to use the threat of climate change as an opportunity to initiate the process of getting the Fed to allocate capital from carbon-intensive industries to accelerate the transition to a low-carbon economy,” he says. .. He said. “This makes me want to explode my head.”
He called it a “public conspiracy” by the Democratic Party and used tools not designed for its mission to curb climate change.
Toomey, one of seven Republican senators to vote Convict the former president Donald Trump will retire in the November midterm elections in his second impeachment trial. The move sparked a fierce battle for his seat, with two leading candidates being television personality Mehmet Oz and hedge fund chief David McCormick.
Oz is one of more than 100 candidates approved by Trump, including author and venture capitalist JD Vance. Won his fiercely contested race This week I will be Ohio State Senator.
However, despite the victory, Toomy argued that the former president’s influence on the party had diminished.
“He’s been trying to pick a horse that wins very often, so that he can later recognize the achievements of the win anyway and boast of an astonishing record of wins and losses,” Toomey said. I am saying.
“First of all, he’s not going to win everywhere — I think there are some cases where he’s unlikely to win, and second, people aren’t stupid. You know, They will see what is happening here.
“I think his influence will continue to decline — I think it’s already happening.”