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Speakers prepare to tell US House Financial Services Committee about stablecoins

Press Releases Crypto News Cointelegraph Speakers prepare to tell US House Financial Services Committee about stablecoins

The United States House of Representatives Committee on Financial Services will hold a hearing on stablecoin regulation on April 19. The hearing follows the announcement of a new draft bill in the House to provide a framework for stablecoins regulation. Some of the speakers invited have released advance transcripts of their planned testimony.

Stablecoins “look a lot like pretty basic cash instruments. […] Stablecoins are actually mundane,” Austin Campbell, a managing partner at Zero Knowledge Consulting and adjunct professor at Columbia Business School, will tell the committee. Campbell is convinced that stablecoins will expand the reach of the U.S. dollar and increase financial inclusion if legislation does not derail their progress.

According to Campbell, the United States has a lot to lose from driving stablecoin issuers away:

“The biggest winner of the US regulatory actions and legislative inaction over the past year has been Tether, an offshore stablecoin that provides very little in the way of transparency or consumer protection.”

Blockchain Association chief policy officer Jake Chervinsky will call stablecoins “a revolutionary upgrade” of the traditional payment systems. Like Campbell, Chervinsky touts dollar-denominated stablecoins as increasing financial inclusion and preserving the dollar’s role in the international economy.

Neither the Securities and Exchange Commission nor the Commodity Futures Trading Commission currently have the regulatory authority necessary to regulate stablecoins, Chervinsky argued. It is hard to construe stablecoins as securities, Chervinsky said, and the CFTC lacks the jurisdiction to oversee spot markets.

Absolutely sensational testimony from @CampbellJAustin who will be testifying in the House hearing on stablecoins tomorrow. Probably the single best document I’ve read that makes the case for stablecoins as favorable to US interests https://t.co/kuQcTR9sCk