In a recent interview with Bloomberg, Denelle Dixon, the CEO of the Stellar Development Foundation, shared her views on the need for US lawmakers to regulate stablecoins pegged to the US dollar.
Dixon believes that such regulations will not only help strengthen the value of the national currency but also ensure that the US remains a dominant force in the global financial market.
According to Dixon, US financial regulators have already begun tightening their oversight of the cryptocurrency industry, and this move has been long overdue.
The dollar is also facing pressure from countries that seek to reduce dependence on the US state currency. Dixon sees the regulation of stablecoins as a viable solution to this problem.
Dixon is confident that by the end of the year, the authorities will set minimum requirements and standards for issuers of stable cryptocurrencies.
She believes that dollar-backed stablecoins will play a crucial role in maintaining the strength of the US dollar on the global stage.
However, Dixon warns that if the US government fails to develop regulations for stablecoins, the country may find itself in a bifurcated world, with more cryptocurrency-friendly legislation outside the US.
This could lead to industry companies setting up outside the country, and Americans being interested in using their products and technologies.
While the administration of US President Joe Biden has already published a roadmap for regulating cryptocurrencies, Dixon believes that only Congress can truly influence the control of crypto assets.
She believes that the main focus should be on the benefits and value of stablecoins for society. Unfortunately, the US Treasury Departments remain divided on crypto assets, and this is delaying the development of regulations.
The Commodity Futures Trading Commission (CFTC) considers stablecoins to be commodities, while Securities and Exchange Commission (SEC) Chairman Gary Gensler insists that all digital assets, other than bitcoin, should be considered securities.
In conclusion, Dixon’s call for the regulation of stablecoins in the US is an important step towards ensuring the stability of the global financial market.
With the right regulations in place, stablecoins could help strengthen the value of the US dollar and maintain the country’s dominance in the financial industry.