U.S. Politician Urges Lawmakers to Regulate Stablecoins
Cryptocurrency policy is shaping the upcoming 2024 presidential race, with Biden administration officials preparing to attend a policy roundtable convened by Representative Ro Khanna (D-CA), and former President Trump endorsing keeping crypto companies at home.
The debate has been joined by former Speaker of the House Paul Ryan who called on lawmakers to formulate a “sound and predictable regulatory framework for stablecoins in the U.S.”
The Policy Council at Paradigm, a crypto-focused VC firm, which Ryan is now part of, says in an opinion in The Wall Street Journal that use of stablecoins could make American debt more attractive internationally and prevent failed debt auctions that would undermine American creditworthiness.
Ryan stressed that if other nations strengthen their currencies while discarding US Treasury bonds, USA must come up with new mechanisms to make its currency more appealing.
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He suggested that dollar-backed stablecoins might be a solution. In addition, he drew attention to China’s adoption of digital dollar technology via its e-yuan as an example America should not lag behind other major global rivals in this regard.
Ryan warned against emulating China’s central bank digital currency system through a digital dollar from the US; instead he posited value-based dollar backed coins released on public permissionless blockchains.
A bipartisan effort was called for by him in Congress to create a stable regulatory infrastructure for stablecoins and thereby maybe achieving something significant amid political tensions caused by elections.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
