America House Committee on Monetary Companies launched a memorandum detailing the factors of dialogue throughout the hybrid hearing on digital belongings to be held on Wednesday at 10:00 am ET.
Addressing the members of the Monetary Companies Committee, the memo confirmed that the hearing will dedicate one panel to 6 executives from the crypto group as witnesses. The listing contains Circle’s Jeremy Allaire, FTX’s Sam Bankman-Fried, Bitfury Group’s Brian Brooks, Paxos’ Charles Cascarilla, Stellar’s Denelle Dixon and Coinbase’s Alesia Haas.
The hearing, entitled “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States,” seeks to debate 4 key features: crypto exchanges, stablecoin choices, regulatory considerations in digital belongings and federal regulatory responses.
The temporary reads, “This hearing will examine some of the new products and services offered by major digital assets market participants, the role of cryptocurrency market exchanges in facilitating investments in cryptocurrency and related transactions, the growth of stablecoins and other digital assets, and the current regulatory landscape governing these new products and services.”
— U.S. House Committee on Monetary Companies (@FSCDems) December 1, 2021
Whereas the memo highlights the function of exchanges in serving as an entry level for crypto buyers, the hearing may even focus on decentralized finance, given its potential to “replicate and replace conventional delivery of financial services such as loans, asset trading, insurance, and other services.”
The doc additionally talks in regards to the variations in operational buildings and reserve compositions of stablecoins as in comparison with fiat foreign money, including:
“Cryptocurrency markets have no overarching and centralized regulatory framework, leaving investments in the digital assets space vulnerable to fraud, manipulation, and abuse. Digital assets and related service providers can present money laundering, terrorist financing, sanctions evasion, kleptocracy, and other illicit finance risks.”
Acknowledging the rise of cryptocurrencies, Congress hopes to develop a transparent stance on central financial institution digital currencies (CBDC) based mostly on the continued research carried out by the Federal Reserve to “examine the potential benefits and risks of CBDCs and its impact on the U.S. domestic payments system.”
On Tuesday, Circle’s Allaire launched a press release ahead of the hearing, stating:
“In a world where money becomes a core feature of the internet, the U.S. should aggressively promote the use of the dollar as the primary currency of the internet, and leverage that as a source of national economic competitiveness, security and a major upgrade needed for more efficient and inclusive financial services.”
Allaire’s agency, Circle is the only real issuer of dollar-backed stablecoin USD Coin (USDC). He advised that the U.S. authorities could make mainstream use of the stablecoin by way of dollar-denominated reserves. “Policy frameworks need to support an open and competitive playing field, and allow new technologies to flourish,” he added.