On April 19, the U.S. House of Representatives Financial Services Committee held a hearing on stablecoin regulation. The hearing comes after the House of Representatives announced a new bill to provide a regulatory framework for stablecoins.
Austin Campbell, managing partner of Zero Knowledge Consulting, will testify that stablecoins will expand the reach of the dollar and increase financial inclusion, as long as legislation does not impede their progress.
Campbell will argue that stablecoins, cryptocurrencies backed by assets such as the U.S. dollar, can provide excluded people with access to the global financial system. He believes that stablecoins have the potential to reduce transaction costs and increase the speed of cross-border payments, making it easier for people to send and receive money around the world.
Blockchain Association Chief Policy Officer Jake Chervinsky will also testify at the hearing. He called stablecoins a “revolutionary upgrade” to traditional payment systems. Chervinsky praised dollar-denominated stablecoins as a way to increase financial inclusion and maintain the dollar’s role in the global economy.
The hearing is expected to focus on the risks and benefits of stablecoins, and how they can best be regulated. The U.S. government has been grappling with the regulation of cryptocurrencies for some time, and stablecoins are no exception. In particular, there are concerns about how stablecoins are backed, how they are issued, and how they can be used for illicit purposes.
One of the most high-profile stablecoins, Tether, has come under scrutiny from regulators over whether its reserves are fully backed by U.S. dollars. The company has repeatedly claimed to be well stocked, but is still under investigation.
As the use of stablecoins continues to grow, it is clear that regulation is needed to ensure their stability and prevent potential risks. The April 19 hearing is just one step toward providing a regulatory framework for stablecoins in the United States.
