US regulators have been focusing on the DeFi altcoin market in recent days. In a recent development, Circle executive Dante Disparte, one of the largest stablecoin producers, has been summoned to the US Congress.
Circle executive to attend hearing on stablecoin payments and altcoin regulations
The U.S. Financial Services House Committee will hold a hearing on April 19 to discuss the position of stablecoins as a means of payment and whether the ecosystem needs supportive legislation.
The committee has announced an upcoming hearing titled “Understanding the Role of Stablecoins in Payments and Regulatory Need.” The trial includes information gathered by various federal government agencies over the past year.
Participants who testified at the hearing include Dante Disparte, Circle’s chief strategy officer and head of global policy.
What will be discussed at the hearing?
Last month, on March 11, Circle’s in-house stablecoin offering, USD Coin, tumbled from the US dollar after it announced that $3.3 billion in funding was stuck at the collapsing Silicon Valley Bank (SVB).
However, after the US government bailed out SVB depositors, USDC pegged its value back to the US dollar. During this timeline, hackers managed to gain access to Disparte’s Twitter account and began offering fake loyalty rewards to longtime USDC users.
The upcoming committee hearing will focus on various stablecoins and their use in the payment environment. Additionally, the committee will explore the need for stablecoin legislation based on underlying collateral structures.
Just days before the upcoming hearing, a bill providing a framework for stablecoins in the US has been published in the House of Representatives document repository.
US Congress to introduce new bill for stablecoins
A new draft bill providing a framework for stablecoins in the US was published in the House of Representatives document repository a few days before a scheduled hearing on the matter on April 19. The draft puts the Fed in charge of non-bank stablecoin issuers, such as crypto firms Tether and Circle, which issue Tether and USD Coins, respectively.
According to the document, insured depository institutions wishing to issue stablecoins will come under appropriate federal banking agency supervision, while non-bank entities will be subject to Fed oversight. Failure to register can result in up to five years in prison and a $1 million fine.
“It is clear that deep, bipartisan support is needed for laws that ensure the safe issuance, support and operation of digital dollars on the internet,” Circle CEO Jeremy Allaire said in a Twitter message.
US regulators clash over crypto securities
cryptocoin.com In a hot development that we cited as CFTC, another US regulator, unlike the SEC, argued that Bitcoin is a commodity. The CFTC’s view comes to the case of Rashawn Russell, who ran a ponzi over USDC. While SEC Chairman Gary Gensler recently described all cryptocurrencies as commodities except Bitcoin, the CFTC took the opposite decision.
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