Dissenting Opinions As Regards The US Senate Hearing on Stablecoins Regulation

There are diverse opinions and views as regards the Tuesday meeting of the United States Senate ad-hoc Committee on Banking, where the legislature will look into the control and regulation of Stablecoins.

The meeting will, among other things, consider the pros and cons attached to the issuance of stablecoins to users as well as the hazards included, if any.

There even seems to be different caucuses among the senators and gallerians as they share different perspectives bordering on the merits and demerits benefits of the coin.

Expert opinions are not left out of the picture as professionals with a clean and vast understanding of stablecoins also have clashing ideas on its regulation.

The highly anticipated public hearing of the Senate Committee today is tagged: “Stablecoins: How do They Work, How Are They Used, and What Are Their Risks?”

Among those to be present are expert witnesses from various walks of life. They include Professor of Law from the American University Washington College of Law, Hillary Alen among others.

Senators present at the hearing include Senator Elizabeth Warren, Senator Patrick Toomey, and Senator Sherrod Brown, who are all members of the Senate Committee on Banking.

No Need Of Having A Structure That Regulates Stablecoins

Many stakeholders in the financial system have also lent their voice to this crucial topic. It has been said, from one quarter, that what makes decentralized finance (DeFi) large and substantial as it is can majorly be attributed to its adherence with different laws and guidelines.

Though many of these regulations do not have legislative backing, some of them do and they have all proven to be potent and working. Examples of these include Anti-Money Laundering (AML).

For stablecoins, it is as a result of the absence of these laws in stablecoins that made it easy to exchange payments via one crypto to another cryptocurrency.

On the other side of the line, it is argued that there is a huge and dire need to put a platform  for oversight functions in place. On this note, the onus falls on the Senators to enact laws that’ll make agents issuing stablecoin have their activities registered and work under an agreement between the US Government and the necessary stakeholders.

Lawmakers Implored To Embrace The Crypto Sector and Its Dynamics

Senator Patrick Toomey, a member of the Republican Party, was of the position that stablecoins play a monumental role in the national economy as its impacts can be positively felt in ensuring lower transaction costs, and higher accessibility to payment portals.

He partly supported regulation but that it has to be to tackle financial hazards and encourage consumer protection. In a nutshell, the regulation must not lead to restraint or limitation of the ideas available in the digital economy of the world.

While giving her contributions in the previous hearings, Senator Elizabeth Warren from Massachusetts has pushed for censorship of the assets. She believed that it is responsible for the activation of many dubious businesses in the crypto economy because Defi, which is the major blockchain, does not put the necessary measures in place to protect its users.