For the past century, the US has reigned as the world’s economic superpower. The key to long -term economic can be a regulatory environment that encourages and provides modern technology. From semiconductors to personal computers to Internet 1.0 and 2.0, US companies have led to the development of cutting technologies because our country provides its builders and creators. Unfortunately, when it comes to Web3 – the next generation of Internet developed in blockchain, digital assets, and cryptocurrencies – we ride and are at risk of falling further.
In 2023, the European Union Comprehensive CryptoCurrency Regulation (Americanbar.org)And many significant provisions took place last day. China’s central bank has been Promoting Digital Yuan (Forbes.com)that threatens the role of the US dollar as a global currency reserve. The US is just watching, as our opponents move pieces on the chessboard.
It is really important in the future of our country that the US has made clear and intelligent cryptocurrency regulations that promote change and keep web3 jobs within our borders, protect consumers, and maintain the dominance of the US dollars.
We should start with Stablecoins.
For newcomers, Stablecoins are cryptocurrencies whose values are peg in national currencies or high-quality financial assets. It gives them stability and gives them to play an important role in the digital economy, where they combine the speed of transaction and low cost of digital assets with the price stability of traditional currency reserves. The US is already playing a key role in this space. According to a reportMore than 95% of Stablecoins are “linked to the US dollar.”
Many cases of using stablecoins have gained support from policy manufacturers throughout the ideological spectrum. Conservatives appreciate their inexpensive costs, frictionless and immediate payment capabilities, which can reduce costs to merchants and consumers and spur startups and economic activities. Progressives appreciate their use of decreasing the cost of remittances and underbanked and underverved, and their ability to increase access to basic financial services.
It should be recognized that, like any new technology, stablecoins have challenges. Some stablecoins, which are -backing of complex algorithms rather than stable money reserves, have collapsed due to design flaws. In addition, unlike bank deposits, stablecoins are not ensured by the FDIC, which creates the risks that should be alert. While concerns have been raised about money laundering, Stablecoins do not abuse this purpose more than traditional cash. But for the public to have confidence in Stablecoins, and for businesses to adopt them, we need clear regulations to provide consumer protection, to manage those who give and guard against money laundering.
The Bipartisan Guide and Establishment of National Innovation for US Stablecoins (Genius) Act, Which one I introduced on February 4 with senators Bill Hagerty, Cynthia Lummis, and Tim Scott, These challenges will be discussed, and will create a clear regulatory environment that provides the cryptocurrency environment.
It protects consumers by handling stablecoin providers with strict reserve requirements, asking them to maintain one-to-one reserve on cash and cash equivalent. The bill forbids the release of non -packed, algorithmic stablecoins, the collapse of which led to major losses. To meet their use for non-prohibited purposes, it requires approved stablecoin providers to comply with anti-money policies and penalties. Finally, the bill clarifies the policies around the conservatorhip and procedure should be an insolvency of a stablecoin that has given the experience.
While this bill will undoubtedly be released as it moves to Congress, it has received input from a wide swath of stakeholders, including industry participants, academic and federal regulators experts. This is a true Bipartisan effort that will empower the innovators and builders while simultaneously moving evil actors.
Putting the basis for the next century of extraordinary Americans is a mission to unite with all of us, and positioning the United States on the top edge of the next internet repeat is key to that purpose. Stablecoins are already playing an important role, and we are critically active today to maintain our position as a leader in global economic competition.
