Lack of stablecoin regulation could push issuers out of US

United States lawmakers discussed the role of stablecoins in a committee hearing, but some experts expressed concern about the country’s regulatory environment.

In an April 19 hearing of the U.S. Subcommittee on Digital Assets, Financial Technology and Inclusion, Austin Campbell, an adjunct assistant professor at the Columbia Business School, said areas including Singapore, Dubai, Abu Dhabi and the United Kingdom have already proposed frameworks for stablecoins that could offer a competitive regulatory environment for issuers looking for a home.

“If you look around the world, you’re starting to see legislation that deals specifically with fiat-backed stablecoins,” said Campbell. “I think we can do better in America. Our financial regulation and systems are more robust. […] If we don’t act, those are the best options and people will take advantage of them.”

In Campbell’s written testimony, he added:

“When I am asked to consult or advise for projects attempting to build stablecoins or use stablecoins, my first advice has now become to avoid US operations and a US domicile. The jobs are going elsewhere.”

#WATCH: Subcommittee Chairman @RepFrenchHill at today’s hearing on stablecoins:

“It’s time for Congress to act and pass legislation to establish a regulatory framework for payment stablecoins.”

Read more https://t.co/eFqzkCC1Zi

Watch his opening remarks pic.twitter.com/VYHgJRHqOD

— Financial Services GOP (@FinancialCmte) April 19, 2023

Some lawmakers on the committee echoed similar concerns about legislation proposed to handle stablecoins in the United States. House Financial Services Committee Chair Patrick McHenry released a discussion draft bill on how Congress could address stablecoins used for payments and a central bank digital currency.

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Author: Turner Wright

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