{"id":1192,"date":"2021-12-09T02:02:40","date_gmt":"2021-12-09T02:02:40","guid":{"rendered":"http:\/\/egrowonline.com\/?p=1192"},"modified":"2021-12-09T02:02:40","modified_gmt":"2021-12-09T02:02:40","slug":"stablecoins-empower-the-u-s-dollar-ceos-tell-congress","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=1192","title":{"rendered":"Stablecoins Empower the U.S. Dollar, CEOs Tell Congress"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"\">\n<section class=\"article-key-takeaways\">\n<h3>Key Takeaways<\/h3>\n<ul>\n<li>CEOs and executives from several leading crypto firms testified on stablecoins in front of U.S. Congress today.<\/li>\n<li>Those executives told the House Committee on Financial Services that stablecoins will strengthen the U.S. dollar.<\/li>\n<li>Representatives from Coinbase, FTX, Circle, Stellar and other companies appeared during the hearing.<\/li>\n<\/ul>\n<\/section>\n<section class=\"article-share top\">\n<h4>Share this article<\/h4>\n<\/section>\n<p><span style=\"font-weight: 400\">U.S. Congress conducted a hearing on crypto assets today, hearing testimonies from the industry\u2019s most notable executives.<br \/><\/span><\/p>\n<h2><strong>Crypto Executives Defend Stablecoins<\/strong><\/h2>\n<p>The hearing was held by the House Committee on Financial Services in the U.S. Congress. <span style=\"font-weight: 400\">Chairwoman Maxine Waters hosted a hearing on the topic of \u201cDigital Assets and the Future of Finance.\u201d <\/span><\/p>\n<p>During the c<span class=\"css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0\">ongressional h<\/span><span class=\"css-901oao css-16my406 r-poiln3 r-b88u0q r-bcqeeo r-qvutc0\">earing<\/span> live-streamed on <a target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=ohp-Trq4HU4\" rel=\"noopener noreferrer\">YouTube<\/a>, executives from leading crypto firms gave their testimonies. Witnesses included Circle CEO Jeremy Allaire, Bitfury CEO Brian Brooks, Paxos CEO Charles Cascarilla, Coinbase CFO Alesia Haas, FTX CEO Sam Bankman-Fried, and Stellar CEO Denelle Dixon.<\/p>\n<p><span style=\"font-weight: 400\">One topic extensively discussed was stablecoins, or tokens are that are price pegged to traditional currencies such as the U.S. dollar.\u00a0<\/span><\/p>\n<p>The topic is relevant to several of the executives: Circle and Coinbase are responsible for the <a target=\"_blank\" href=\"https:\/\/cryptobriefing.com\/circle-centre-usdc-usd-coin\/\" rel=\"noopener\">USD Coin<\/a> stablecoin (USDC), while Paxos is responsible for its own <a target=\"_blank\" href=\"https:\/\/cryptobriefing.com\/paxos-rebrands-stablecoin-to-look-like-tether-usdc\/\" rel=\"noopener\">Paxos dollar<\/a> (USDP).<\/p>\n<h2>Allaire and Brooks Emphasize Competition<\/h2>\n<p><span style=\"font-weight: 400\">Circle CEO Jeremy Allaire <\/span>argued that rather than causing harm, stablecoins may help the global dominance of the U.S. dollar.<\/p>\n<p><span style=\"font-weight: 400\">Allaire argued independent U.S. stablecoins will continue to dominate the crypto market even as competing alternatives such as China\u2019s digital yuan, issued by its central bank, emerge on the market. <\/span><\/p>\n<p><span style=\"font-weight: 400\">Whereas dollar stablecoins have carried out \u201ctrillions of dollars of transactions,\u201d China\u2019s digital yuan has done \u201conly $10 billion worth of transactions so far,\u201d Allaire observed.<br \/><\/span><\/p>\n<p>He explained that the U.S. crypto industry wants the dollar to play a critical and strategic role, and as such, supporting U.S. stablecoins should be a \u201cnational security priority\u201d for regulators.<\/p>\n<p>Bitfury CEO and <a target=\"_blank\" href=\"https:\/\/cryptobriefing.com\/former-occ-head-brian-brooks-lead-binance-us\/\" rel=\"noopener\">ex-OCC chair<\/a> Brian Brooks agreed with Allaire in his testimony. Brooks said that., at a time when inflation is rising, stablecoins can help the U.S. dollar become utility-driven and \u201c<span style=\"font-weight: 400\">not just a monetary system created after World War II.\u201d<br \/><\/span><\/p>\n<p>Brooks endorsed U.S. stablecoins, arguing that their online nature will allow the dollar to \u201c<span style=\"font-weight: 400\">compete on features, not only on history.\u201d<\/span><\/p>\n<h2>Others Discuss Stablecoin Security<\/h2>\n<p>Allaire went on to argue that stablecoins provide security. He noted that the assets backing stablecoins \u201care safer than dollars in bank accounts because [the latter] are fractionally reserved and lent out.\u201d This, he said, poses more risk to the U.S. economy than stablecoins.<\/p>\n<p><span style=\"font-weight: 400\">Paxos CEO Charles Cascarilla also testified to the security of stablecoins. Addressing concerns of a bank run caused by stablecoins, Cascarilla affirmed that stablecoins are \u201cbacked by money sitting in FDIC-insured bank accounts or money sitting in Treasury bills.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400\">This, he said, means there is \u201cno risk of a run.\u201d Cascarilla explained further: \u201cIt\u2019s liquid cash, and you have tokenized a dollar. There is very good utility for such assets.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400\">Responding to criticism that stablecoins could be ripe for illicit activities, FTX CEO Sam Bankman-Fried said that \u201cadvanced policies are already in place\u201d and that the \u201cdigital asset industry has a pretty strong standard\u201d for KYC\/AML procedures.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The other witnesses, Coinbase CFO Alesia Haas and Stellar CEO Denelle Dixon, discussed how stablecoins can help the unbanked.<\/span><\/p>\n<p><span style=\"font-weight: 400\">They also suggested that greater clarity is needed from regulators, a<\/span> point that is in line with Coinbase\u2019s <a target=\"_blank\" href=\"https:\/\/cryptobriefing.com\/coinbase-wants-the-u-s-to-revamp-crypto-regulations\/\" rel=\"noopener\">recent policy proposal<\/a>, which suggests that a new regulatory framework should be created.<\/p>\n<h2>Reception to Hearing Was Positive<\/h2>\n<p><span style=\"font-weight: 400\">The majority of the committee members who spoke during the hearing supported the idea of not stifling innovation in the crypto sector. While several questions were posed as to how regulators can ensure investor protections, the general outcome of the discussion was positive and encouraging for the cryptocurrency space. <\/span><\/p>\n<p><span style=\"font-weight: 400\">Jake Chervinsky, a notable crypto lawyer and the head of the Blockchain Association, commented on the hearing by <a target=\"_blank\" href=\"https:\/\/twitter.com\/jchervinsky\/status\/1468674110662352904\" rel=\"noopener noreferrer\">calling<\/a> it \u201cthe most positive, constructive, and bipartisan public event on crypto.\u201d<\/span><span style=\"font-weight: 400\"><br \/><\/span><\/p>\n<p><span style=\"font-weight: 400\">Committee ranking member Patrick McHenry has called the cryptocurrency sector the \u201cnext generation of the internet.\u201d He added that U.S. Congress must collaborate in a non-partisan way to regulate the burgeoning sector.\u00a0<\/span><\/p>\n<section class=\"article-share bottom\">\n<h4>Share this article<\/h4>\n<\/section>\n<section class=\"article-footer\">\n<div class=\"disclaimer\">\n<div class=\"disclaimer-content\">\n<p>The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.<\/p>\n<p>You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.<\/p>\n<p>See <a target=\"_blank\" href=\"https:\/\/cryptobriefing.com\/terms-and-conditions\" rel=\"noopener\">full terms and conditions<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/section>\n<section class=\"recommended-posts\">\n<div class=\"section-content\">\n<div class=\"posts-list\">\n<div class=\"post-item \">\n<a target=\"_blank\" class=\"article-url\" href=\"https:\/\/cryptobriefing.com\/u-s-sec-could-gain-authority-over-stablecoins\/\" rel=\"noopener\"><\/p>\n<div class=\"info\">\n<h3 class=\"title\">U.S. SEC Could Gain Authority Over Stablecoins<\/h3>\n<p>\nThe U.S. SEC could soon gain authority over stablecoins, according to a report published by Bloomberg today. SEC Wants to Regulate Stablecoins Bloomberg\u2019s sources suggest that the U.S. Treasury and&#8230; <\/p>\n<\/div>\n<\/div>\n<div class=\"post-item na-item\" data-na_id=\"99168\" data-na_location=\"recommended\">\n<a target=\"_blank\" class=\"article-url\" href=\"https:\/\/cryptobriefing.com\/mdex-overlooked-decentralized-exchange-pays-you-trade\/\" rel=\"noopener\"><\/p>\n<div class=\"info\">\n<h3 class=\"title\">MDEX: Overlooked Decentralized Exchange That Pays You to Trade<\/h3>\n<p>\nBased on statistics from\u00a0DeBank\u00a0and\u00a0dapp.com, one of the top-performing decentralized exchanges by TVL and trading volume this year is MDEX\u2014an AMM-based DEX functioning across the Huobi Eco-chain (HECO), Binance Smart Chain&#8230; <\/p>\n<\/div>\n<\/div>\n<div class=\"post-item \">\n<a target=\"_blank\" class=\"article-url\" href=\"https:\/\/cryptobriefing.com\/stablecoin-report-released-by-key-u-s-advisory-panel\/\" rel=\"noopener\"><\/p>\n<div class=\"info\">\n<h3 class=\"title\">Stablecoin Report Released by Key U.S. Advisory Panel<\/h3>\n<p>\nA highly-anticipated report from the President\u2019s Working Group on Financial Markets was released today. The report urged swift legislative action to extend federal oversight to the rapidly-growing stablecoin market. PWG&#8230; <\/p>\n<\/div>\n<\/div>\n<div class=\"post-item \">\n<a target=\"_blank\" class=\"article-url\" href=\"https:\/\/cryptobriefing.com\/bis-says-stablecoins-need-traditional-payments-rules\/\" rel=\"noopener\"><\/p>\n<div class=\"info\">\n<h3 class=\"title\">BIS Says Stablecoins Need Traditional Payments Rules<\/h3>\n<p>\nA new report from the Bank for International Settlements suggests that stablecoins should be subject to the same rules as traditional payment systems. IOSCO-BIS Prescribe Stablecoin Rules A new report&#8230; <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/cryptobriefing.com\/stablecoins-empower-the-u-s-dollar-ceos-tell-congress\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways CEOs and executives from several leading crypto firms testified on stablecoins in front of U.S. Congress today. Those executives told the House Committee on Financial Services that stablecoins will strengthen the U.S. dollar. Representatives from Coinbase, FTX, Circle, Stellar and other companies appeared during the hearing. Share this article U.S. Congress conducted a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1193,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[44],"tags":[1223,799,579,1222,1221],"class_list":["post-1192","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ada","tag-ceos","tag-congress","tag-dollar","tag-empower","tag-stablecoins"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2021\/12\/usdollar-768x403.png","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/1192","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1192"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/1192\/revisions"}],"predecessor-version":[{"id":1194,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/1192\/revisions\/1194"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/1193"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1192"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}