Former Chairman of the Commodity Futures Trading Commission (CFTC), Timothy Massad, believes that stablecoins should not be ignored by the US government. In an interview with CNBC, Massad expressed his concern that American authorities are making a mistake by not regulating stablecoins. He argues that these digital assets could bring healthy competition to the payment system if the risks associated with their usage are properly addressed.
Massad sees stablecoins as a potential bridge between the crypto world and the real world. He emphasized the need for regulators to understand the risks involved and not simply exclude stablecoins from their regulatory scope. Instead, he suggests treating stablecoins as a payment mechanism rather than an investment vehicle. Massad believes that stablecoins could enhance the US payment network and bring it up to par with other countries that have developed more efficient systems.
While acknowledging that some government officials may be skeptical about the use cases of stablecoins, Massad urges them to take the time to understand their potential. He believes that if the US were to establish stablecoin regulations, other countries would likely follow suit.
In recent months, there have been discussions about potential legislation for stablecoins in different regions of the US. For example, lawmakers in New York proposed amendments that would allow residents to pay bail bonds in stablecoins. However, the specific assets to be included in the bill have not been specified. Jerome Powell, Chairman of the Federal Reserve, also expressed the view that stablecoins are a form of money that should fall under the jurisdiction of the central bank.
Overall, Massad’s remarks highlight the importance of considering stablecoins as a means to connect the crypto world with the real world. By regulating these digital assets and addressing the associated risks, the US could potentially improve its payment system and set an example for other countries to follow suit.
