Unless people are talking about inflation or recession, they are talking about cryptocurrencies.What is a cryptocurrency, who regulates it, who is subject to regulation, and who writes the rules for cryptocurrencies? There have been many “activities” aimed at answering these questions. As stated in the new work of summary On the state of play: “The Biden administration presidential decreeembark onA comprehensive approach across governmentFor regulation of cryptocurrencies and other digital assets.This was followed immediately by discussion draft, white paper , bipartisan bill,Furthermore drastic proposalIt seeks to establish a complete regulatory framework for cryptocurrencies. ”
Despite all this, Congress left Washington to campaign for the midterm elections without enacting a regulatory framework.In fact, the most likely areas are stablecoinBut after months of negotiations between House Financial Services Committee Chairman Maxine Waters, ranking member Patrick McHenry, and Treasury Secretary Janet Yellen, even this hasn’t come to fruition. did.
Stablecoins, especially those pegged to the dollar, look relatively simple. Already, he has over $100 billion in circulation, making him the preferred medium of exchange across the digital asset economy. As stablecoins become more widely adopted, traditional commerce may also be encouraged. Unlike other cryptocurrencies, stablecoins don’t look like securities (at least to me), so it’s easy to determine who’s regulating them. (Previously pieceWade said:investment contract‘ depends on howie test, established by a Supreme Court decision almost 100 years ago. Any financial instrument (potentially including cryptocurrencies) is considered a security if: in a business in general; with a reasonable expectation of profit; obtained from the entrepreneurial or managerial efforts of others. ”)
Also, Congress is a clean slate and should not impose stablecoin regulation on existing banking regulatory frameworks. As long as the stablecoin market is transparent and has proper safety and soundness regulations, it doesn’t matter who issues the stablecoin. The regulatory framework should generate innovation and new entrants in competitors and products.
It is important to clarify the ground rules of cryptocurrencies, and stablecoins are a promising starting point.