in the USA recently stablecoin work is progressing rapidly. In this context stablecoins High-level officials and important names of the industry are making statements one after another.
About stablecoins USA After Nellie Liang, Under-Secretary of the Treasury Department, Jan van Eck, CEO of asset manager Van Eck, also made statements.
The famous CEO, who wrote an article in the weekly magazine Barron’s, explained that stablecoins are digital assets that follow another asset, usually the US dollar, noting that its use has increased considerably recently.
Stablecoins Cannot Be Regulated Like Banks!
Van Eck CEO said that, contrary to the recommendations of US regulators, stablecoins should not be regulated like banks but should be treated as mutual funds.
“Stablecoins don’t lend like banks, so I don’t see why there is pressure to regulate them like banks do. Bank regulation can actually mean a kind of government guarantee.”
On this issue, the President’s Financial Markets Working Group (PWG) published a report recommending that stablecoins be subject to the same regulations as banks.
Likewise, Nellie Liang, Undersecretary of the US Treasury Department, said in her speech at the Congress that stablecoins are bank-like products.
Van Eck CEO criticized the working group for his report on stablecoins.
“Despite the similarity of stablecoins with money market funds, PWG recommended that stablecoin issuers be “insured depository institutions.” Stablecoins invest in securities; They don’t lend money like banks do.”
The famous CEO also suggested not to apply tax withholding on stablecoins in the future.
Saying that this will give stablecoins an opportunity to prove their worth in the US, Jan van Eck said, “Most stablecoins do not currently pay dividends. But we need to imagine a day when stablecoins pay interest and plan for that day technologically and regulatoryly.” said.
*Not investment advice.