After years in which the initiates of Crypto have desperately sought to attract the attention of the US Congress, pro-nummerical witnesses at the last hearing of the Congress on the Stablecoins include a senior executive from the New York Mellon Corp. And a lawyer for Davis Polk & Wardwell who spent his career representing Wall Street.
While the dynamics of the congress increase towards the support of the legislation of cryptography in this session, the representatives of the traditional financial system set foot on the scales to help to tip the balance of the regulations of Stablecoin. During the hearing of the Chamber’s Financial Services Committee on Tuesday, Lawyer Randy Guynn argued that the guarantees imposed by transparency and responsibility of the stablescoin for a better law on the economy of the big book, known as the stable law, should put the issuers of these digital tokens under protection similar to the bank.
“If an authorized stabing transmitter has a well -calibrated liquid reserve correctly, a capital stamp and no material amount other than its stabb liabilities, as provided for by the stable act, its payment staboons should be as safe as the insured bank deposits and the largest lawyers on the street by testimony.
And just at the bottom of the table of witnesses of Him, Setter Caroline Butler, the world chief of digital assets of Bny Mellon, that the representative Ritchie Torres, a Democrat in New York, called “the ultimate expression of the traditional financial system”. Butler has said that his bank already offers important services for transmitters such as Circle (USDC) and that the sector needs clarity from the United States government.
“What is very important for the ecosystem is to ensure that with the banks that provide custody, there is confidence and confidence in the ecosystem that customer assets are indeed protected and protected according to federal legislation and regulation,” she told the chamber legislators.
“We want to be able to participate in the options and mechanisms of new and evolving – Stablecoins and Blockchain technology by being an example of this – so that we can continue to meet the evolutionary needs of the market and our customers,” said Butler.
The feelings of supporters of Stablecoin regulations have echoed what has been said often in the past, but the sources of this feeling come from more traditional corners of finance. The confluence has occurred while the political muscle of the cryptographic industry – fueled by tens of millions of dollars of aid provided to the Congress campaigns from cryptographic sources – has strongly strengthened in Washington, as shown by a recent vote of the Senate in which a host of democrats joined the Republicans to overthrow an internal reign of the Crypto Service Service. (The room is expected to vote Tuesday later on the opportunity to join the Senate.)
Thus, Crypto has more friends to make legislation more likely, and Wall Street is there for this.
The Committee Democrat of the Committee, Maxine Waters, and others from her party urged the debate on the stables to return to a bill that she and the former president of the Republican panel, Patrick MCHENRY, had worked together in the aisle. Rejecting this current effort, she asserted a “need to return to the drawing board on stablescoins”.
But representative Sam Liccardo, a Democrat in California, noted the transition to Congress, abandoning resistance to action in one way or another on the stablecoins. “We have gone to discuss how to regulate how to regulate,” he said.
Meanwhile, in the Senate, the similar legislation of Senator Bill Hagerty, called on the National Innovation Act and the establishment of national innovation for the Stablescoins (Genius Act) law was revised and heads for a marking hearing later this week in the Senate banking committee.
While still walking on the stablecoins approach, the Committee also examined the legislation prohibiting the creation of a digital currency from the American central bank (CBDC) on Tuesday. The Republicans carried out a vigorous campaign against the idea and seek more cement the executive order of President Donald Trump to trigger the formation of such a digital dollar. The consideration of an American CBDC has never reached significant progress in the previous administration, but the GOP legislators suggested that the federal government would use it as a tool to spy on citizens, despite the comments of officials such as the president of the Federal Reserve Jerome Powell that his agency had no interest in managing a hypothetical CBDC.
