A high-profile blockchain lobby group is urging United States lawmakers to undertake a “technology-neutral” method when it comes to stablecoin regulation, arguing that dollar-pegged cryptocurrencies do not pose a system danger to the monetary system.
In a 17-page letter addressed to the President’s Working Group on Financial Markets, which incorporates regulators from the Department of Treasury and Federal Reserve, the Chamber of Digital Commerce outlined a six-point plan for future regulatory motion involving stablecoins.
According to the group, stablecoin legal guidelines must be technology-neutral, regulate in a way that is proportionate to danger, be certain that the U.S. maintains a aggressive benefit in blockchain, acknowledge stablecoins as digital cost programs as opposed to investments, guarantee compliance with present Anti-Money Laundering tips and be underpinned by a versatile, principles-based regime.
On the subject of expertise neutrality, the Chamber mentioned stablecoins “should not be subject to a new regulatory regime simply because new technology is being deployed,” including:
“New regulatory treatment for stablecoins should only be invoked to the extent necessary to mitigate unique risks that are not currently addressed by the regulatory regime or to account for stablecoins’ ability to reduce risk or provide new benefits.”
Established in 2014, the Chamber of Digital Commerce has an unlimited membership spanning blockchain, conventional finance and the knowledge expertise sector. Its government committee consists of Binance.US, Bitpay, BlockFi, Citigroup, BNY Mellon, Circle, BNP Paribas, Fidelity Investments, Goldman Sachs, IBM, Mastercard, Visa and Microsoft, amongst others.
U.S. regulators are attempting to tame the quickly rising stablecoin market, which has a collective worth of $130 billion on the time of writing. As Cointelegraph reported, the Biden administration is contemplating grouping stablecoin issuers in the identical class as conventional banks for the aim of regulation. Last month, Federal Reserve Chairman Jerome Powell mentioned the central financial institution has no intention to ban crypto, however that stablecoins require more stringent oversight.
As outlined within the letter, the Chamber of Digital Commerce believes that stablecoins are “already well-regulated at the state and federal level.” A regulatory regime that conflates stablecoins with securities dangers “imposing an overly rigid” system that “stifles innovation.” The Chamber additional defined:
“To protect consumers and reduce costs, we encourage the streamlining of state-level regulatory frameworks for stablecoins and the issuance of special-purpose charters by federal banking regulators for stablecoin companies7 seeking to operate nationally.”