During a subcommittee audience on the current state and the future potential of digital assets, legislators and witnesses to the spheres of crypto and payment – including Paypal – warned against a policy of what has been mentioned on several occasions as regulations by the application.
And, they said, so that the right guarantees are set up, as well as appropriate railings, regulatory clarity is necessary.
The remarks, made in front of the subcommittee of digital assets, financial technology and artificial intelligence of American financial services during a audience of Tuesday, February 11, underlined the challenges of the regulation of the emerging space in The aim of achieving, according to the title of the hearing, “a golden age of digital assets: trace a path to follow.”
Some of the witnesses warned against regulatory surpassing – because they argued that the United States has lagged behind in Europe and China in terms of technology and innovation – and others have stressed the risks on the system Financial linked to the embrace that is always more in the process of running cryptocurrencies and stablecoins.
In his declaration of opening, the president of the subcommittee, the representative Bryan Steil, R-Wis., Said: “Digital assets represent a clear opportunity for the advancement of financial services in the United States”, maintaining that Digital assets can “modernize our financial infrastructure, improve, improve the domination of the dollar in the world markets, increases payments’ efficiency – both at the national level and abroad, and offer American companies and consumers Faster, cheaper and more transparent means of transforming into an increasingly digital economy. »»
His statements have criticized the policy of the last presidential administration of “regulatory surpassing”.
Coy Garrison, partner of the Steptoe LLP law firm, said that there were regulatory gaps in federal surveillance of stablescoins labeled in dollars. But, he said, the recently discussion project made its debut of the stable law provides a framework for the issue and exploitation of stablescoins labeled in dollars.
Paypal weighs
Jose Fernandez Da Ponte, main vice-president of Paypal, who is director general of the blockchain, crypto and the digital currency of the company, said in his testimony that the company “sought to take payments online On onchain. On the risk of exchange and risk of compensation ”while making cross -border payments more effective.
In reference to the regulations, he added that New York State “paved the way for surveillance” because the Ministry of Financial Services of this State also set up a regulatory framework – and there should also be A framework at the federal level.
“We urge legislators to adopt a stablecoin issuing framework which continues to allow a state -based option. This framework must have uniform standards for certain reserve requirements, for example, but a state route is essential to the continuous growth of industry, “said Paypal’s executive. Federal surveillance-and digital asset charters-should focus on payments, while preventing non-banks from entering other banking activities, he told legislators.
In his own remarks, Ji Hun Kim, interim president and CEO of the Crypto Council for Innovation, also underlined a national policy to promote innovation and create “a complete legislative framework. Such an action can ensure that the United States finds its competitive feet alongside other leading jurisdictions ”around the world, because the StableCoin market increased to more than $ 200 billion. He said that the “application by application” of the Biden administration had been illustrated by 125 actions by the DRI -dressed on digital assets.
But Timothy Massad, researcher and director of the digital asset policy project, Kennedy School of Government, Harvard University, said that if stablecoins are the most useful application of blockchain technology and digital active technology, Their becoming a general means of payroll regulatory frame which puts the stable in the stablecoins. “”
He warned that as there is no federal surveillance of state -regulated stabbed transmitters, some of these companies may become important enough to systematically become important (and pose risks for financial stability).
“All this amounts to looking at this in a global way and looking at the fact that we really do not have a regulatory framework for many of these crypto companies, and we have seen a lot of fraud and manipulation because of this.” MASSAD. A regulatory framework, with an approach to the constitutive elements, should start with stablecoins, he told the subcommittee, “then turn to the problems of the market sector.”
