U.S House Committee on Financial Services To Hold Hearing on Stablecoins

• Users’ and the economy’s overall vulnerability is another issue the committee might tackle.
• The hearing on stablecoins will be held on April 19, 2023.

A hearing titled “Understanding Stablecoins’ Role in Payments and the Need for Legislation” will be held by the US House Committee on Financial Services next week.  The usefulness of stablecoins as a payment alternative may be the focus of the hearing. Users’ and the economy’s overall vulnerability is another issue the committee might tackle.

The stablecoin market is essential to the crypto industry’s liquidity. Since coins pegged to the US Dollar may be exchanged for dollars quickly and easily.

Amidst growing anxiety about the security of bank savings. The current financial crisis in the United States brought attention to the usage of cryptocurrencies and stablecoins in particular. Because of this, those who wanted to protect their wealth during tough times looked for other options.

Banking on the Potential of Stablecoins

However, there were also concerns about stablecoins, as these Dollar-pegged coins run the danger of losing their peg to the $1 value. A hearing on stablecoins will be held by the Members of the Committee on Financial Services on April 19, 2023. Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle, the firm behind USDC, will be among those testifying at the inquiry.

In its study on stablecoins from November 2021. The President’s Working Group on Financial Markets (PWG) noted that, with proper oversight, stablecoins have the potential to increase the efficiency of retail payments. 

Therefore, legislators are considering this category for productive applications, but a deadline for regulatory clarity has not been established. Amid the recent crackdown by U.S SEC and CFTC on the crypto sector. This gathering will hopefully clear out regulations surrounding stablecoins.