Coin Metrics’ explosive report of the 1er February 2022 showed numbers supporting the rise of stablecoins in 2021. Doubts remain, however, about the continuation of this strong growth in 2022 due to the potential introduction of regulatory hurdles this year. Stablecoins need to convince lawmakers and regulators of their ability to manage the risks they pose to their users, if they don’t want to fall victim to strict industry regulation. And unfortunately things are off to a bad start for the moment, if we refer to the comments on stablecoins by this Republican elected representative from Ohio in the United States House of Representatives.
>> Come and take your first steps in the world of cryptocurrencies on KuCoin (affiliate link) <<
Tether (USDT) is having a hard time
Warren Davidson, who is nevertheless a fervent defender of cryptocurrencies, did not mince his words on Tether (USDT), when he shared his analysis with the media The Block, concerning the financial risks associated with stablecoins. Tether would be, according to the representative of the 8th district of Ohio, “ a time bomb “.
He even believes that the SEC should be more interested “in Tether than in Ripple and XRP”, blaming the stablecoin its lack of transparency :
“They recognize gray areas, but they don’t divulge what it is exactly. This is where I think a framework that requires disclosure would protect investors. »
Warren Davidson has therefore made his position on stablecoins clear. This politician – member of the House of Representatives Financial Services Committee – was due to examine on February 8, 2022 a crucial report dedicated to stablecoins.
stablecoins would have done well without an opponent further, knowing that the hearing was conducted by Nellie Liang, Under Secretary to the Treasury for National Finance. Nellie Liang should tend to align herself with the request of the President Working Group (PWG) led by Treasury Secretary Janet Yellen, known for her anti-Bitcoin (BTC) rhetoric.
In particular, the PWG calls for Congress to strictly limit the issuance of stablecoins to regulated depository institutions (i.e. the banks).
Bitcoin opponents who fantasize about banning it have still failed to realize their dream. However, governments have demonstrated their ability to put an end to the inclinations of too enterprising stablecoins, like Facebook’s fire Diem.
Are you looking for a serious crypto exchange to help you develop and implement your cryptocurrency investment strategy? Ideal for taking your first steps in new finance, the Kucoin platform just waiting for you (affiliate link)