In a recent development, the Singaporean regulatory authority is targeting to regulate the value stability of stablecoins. In pursuance of this, the Monetary Authority of Singapore (MAS) has sought inputs from 39 prominent firms including Ripple and Circle Internet Financial. Crypto Analyst and Influencer Crypto Eri has taken to Twitter to share the details of this development.
Ripple’s Stance on Regulation and Labeling
According to a recent tweet by crypto influencer Crypto Eri, the Monetary Authority of Singapore has completed the stablecoin registration framework. The framework’s objective is to establish stablecoins as trustworthy digital mediums of exchange and bridges between fiat and digital asset ecosystems.
Ripple and Circle shared feedback with MAS regarding regulating single-currency stablecoins (SCS) linked to the Singapore Dollar. While Ripple supports focusing on domestically issued SCS, it highlights risks in the unregulated global SCS market. Ripple urges comprehensive regulatory guidelines aligned with equal treatment.
MAS also sought Ripple’s input on regulating payment services for SCS issuance. Ripple supports this, advocating its application across all SCS stakeholders involved in creation and destruction. Additionally, Ripple endorses a unified “regulated stablecoin” label for clarity, regardless of the issuer’s nature.
Ripple remarked, “Ripple is supportive of the MAS’ proposal to introduce a single label for SCS issued by banks and non-bank entities, which are regulated for an SCS issuance service under the PS Act, and for intermediaries to also use the same term in their disclosures where they offer such SCS to differentiate them from other stablecoins offered.”
USDC Issuer Circle Agrees with Ripple on Stablecoin Regulations
Circle Internet Financial, the issuer of the USDC stablecoin, echoed Ripple’s viewpoint. Like Ripple, Circle also endorsed MAS’s efforts to introduce further regulations for stablecoin issuers.
Furthermore, the MAS solicited feedback on the proposed reserve requirement for stablecoins. Circle conveyed its approval of the adequacy of the reserve asset requirements.
USA’s Stablecoin Regulations: Time to Catch Up
Singapore has taken proactive measures to regulate stablecoins, exemplified by the Monetary Authority of Singapore seeking input from major industry players to ensure effective regulation. In contrast, the United States’ progress in digital asset regulation has been slower. The Payments Stablecoin Bill, aimed at establishing a regulatory structure for payment stablecoins, recently faced a setback in the House of Representatives. This delay indicates that the USA is falling behind in creating a regulatory framework, potentially impeding economic growth, innovation, and its competitive edge in the digital economy’s evolution.
Source: https://coinpedia.org/news/monetary-authority-of-singapore-seeks-ripples-input-on-stablecoin-regulations-and-labeling/