BIockchain Giant Calls For Softer StableCoins Regulation
One of the most powerful blockchain giants in the industry has asked the United States government to not overregulate stablecoins. The US government is highly concerned and interested in the cryptocurrency stablecoin market that now has a $130 billion capitalization. The government is concerned about the associated risks that can impact every system linked to the financial sector. Several government officials have raised the call for the crypto industry to be regulated, joining voices with victims of crypto scams and phishing attempts who have called for the government to do more to curb crypto scams.
But a powerful Chamber of Digital Commerce lobby group in the US has argued that the stablecoins, which are pegged to the US Dollar, do not pose a risk to the government’s financial policies and asked that the government exempts stable coins from heavy regulations if it decides to impose them on the industry. The group, a high-profile lobbying group, asked the government to be “technology-neutral” and only create regulations that can checkmate the risks and not bury the innovation.
These statements were contained in a 17-page document presented to the government officials tasked with related duties. The group, called the President’s Working Group on Financial Markets, has officials from the Federal Reserve Bank and the Department of Treasury as regulatory members.
The letter contained a six-point actionable statement by the Chamber of Digital Commerce that offers a key plan to follow in regulating the stablecoins’ market. According to the group, any regulatory plan should be technology-neutral, weigh risk and assign appropriate regulations, provide the US with a competitive blockchain advantage, adopt stable coins as payment systems, and enforce principle-based compliance with current and future Anti-Money Laundering Laws.
The Chamber of Digital Commerce group argued that the issue of regulation of stablecoins should be objective and technology-neutral, not consigned to heavy regulations because the technology is new and still being studied. It said that only the barest regulations necessary to prevent and reduce associated risks that have not been covered by existing regulations and laws, or to seek increased capacity of stablecoins to mitigate and manage risks, should be created.
The group also said that since stablecoins are well-regulated at the two highest government levels, further regulations risk stifling the growth and development of the innovative digital payment which might pose some risks to investors and consumers. It asked the regulatory bodies to follow its 6-point recommendations in creating regulations for the industry.
The Chamber of Digital Commerce was established in 2014 as a merger between the old and new technology driving commerce. The Chamber is made up of members from the biggest players in the industry. On its executive committee are representatives from MasterCard Binance.US, VISA, Microsoft, Goldman Sachs, Citigroup, Circle, IBM and Bitpay, among others.
Jerome Powell, Chairman of the Federal Reserve, mentioned in September that the government is not willing to ban cryptocurrencies but seek better regulations to ensure the safety of the financial sector.
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