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Timothy Massad, in an interview with CNBC, urged U.S. federal authorities to focus on addressing the risks associated with the use of stable crypto coins. Regulators should not treat them as if they are a fad that is destined to disappear soon, he said.
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“I sympathize with a lot of people in power who don’t discuss stablecoins simply because they don’t see the value in them. It takes time to realize the potential and see real-world applications,” Massad said.
The former official hopes that stablecoins can speed up payments and improve the entire payment system. Banks are already thinking about something like this, and if the United States starts introducing stable cryptocurrencies into its financial system, other countries will follow suit. Previously, Timothy Massad suggested that the CFTC and the Securities and Exchange Commission (SEC) join forces to develop regulations to govern cryptoassets.
Circle CEO Jeremy Allaire recently approached U.S. authorities with a proposal to support stablecoins on a legislative level: spelling out rules for issuers and rules for holding stablecoins.