The well-known blockchain lobby is urging US lawmakers to adopt a “technology-neutral” approach to regulating stack coins, arguing that dollar-denominated cryptocurrencies pose no risk to the financial system.
In a 17-page letter to the president’s Financial Markets Working Group, which includes regulators from the Treasury Department and the Federal Reserve, the Digital Commerce Chamber outlined a six-point roadmap for future regulatory action, including stack coins.
According to the group, stablecoin laws should be technology-neutral, subject to risk-appropriate regulation, ensure that the United States maintains a competitive advantage on the blockchain, recognize stablecoins as digital payment systems instead of investments, and ensure compliance with existing anti-crisis regulations. . – Money laundering directives. and is supported by a flexible and principled system.
Regarding technology neutrality, the chamber said that stack coins “should not be subject to a new regulatory regime just to spread new technologies,” adding:
“The new stablecoin regulatory regime should only be used to the extent necessary to reduce unique risks that are not currently addressed by the regulatory system, or to account for the ability of stablecoins to reduce risk or offer new benefits.”
The Digital Chamber of Commerce was founded in 2014 and has a wide range of members, including blockchain, traditional finance and the IT sector. Its executive committee includes Binance.US, Bitpay, BlockFi, Citigroup, BNY Mellon, Circle, BNP Paribas, Fidelity Investments, Goldman Sachs, IBM, Mastercard, Visa, Microsoft and many more.
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US regulators are trying to tame the fast-growing stable coin market, which is valued at $ 130 billion at the time of writing. As Cointelegraph reported, the Biden administration is considering grouping stablecoin issuers into the same category as traditional banks for regulatory purposes. Last month, Federal Reserve Chairman Jerome Powell said the central bank did not intend to ban cryptocurrencies, but stack coins would require stricter supervision.
As explained in the letter, the Digital Commerce Chamber believes stablecoins are “already well regulated at the state and federal levels.” A regulatory system that combines stack coins with securities risks “over-regulation” that will stifle innovation. The room further explained:
“In order to protect consumers and reduce costs, we call for the simplification of government regulations for stack coins and the issuance of special statutes by federal bank regulators for companies wishing to operate nationally.”