It is not a good idea to be a crypto firm in the United States, because the Securities and Exchange Commission (SEC) in particular is firing at the industry. Still, most parties remain optimistic, including Corey Then, vice president of global policy at stablecoin publisher Circle.
Then is mostly optimistic because of a new one stablecoin law that has been proposed.
Why is Then optimistic?
The first proposal for the stablecoin law comes from the US House Financial Services Committee. It states that publishers must hold at least 1 to 1 assets for all stablecoins issued. That should guarantee the stability of the currencies.
Interestingly, it should also be possible for stablecoin issuers to hold part of their reserves with the US central bank. This would reduce exposure to commercial banks somewhat.
According to Then, that “significant development” ensures that there is an opportunity to bring to market the most secure and reliable stablecoin in the world.
This is necessary because, according to Then, there is a great “hunger for dollars” all over the world. The strange thing is that there are certain places where it is apparently difficult to get dollars. Consider, for example, countries where there is hyperinflation.
Stablecoins in sight
Then thinks that the US legislator is currently focusing on stablecoins, because there has been a lot of misery in the industry in recent times. For example, how about imploding Terra and that project’s stablecoin.
The implosion of Terra wiped out more than $40 billion in paper assets. That is, of course, a huge amount and probably opened the eyes of lawmakers.
Terra, for example, was also a project where there was no coverage at all. At least, the stablecoins that were supposed to represent dollars were not backed by actual dollars, but by crypto.
New laws should make it possible to market safer products for consumers. That is of course a blessing for parties like Circle, who apparently want to do well.