“Privileging US-BasedCoin Issuers Over Issuers Abroad is Shortsightd and Will Stifle Innovation, Says Moonpay CEO Ivan Soto-Wright.”, – WRITE: www.coindesk.com
What Changed?
The Shift to Voice Over Internet Protocol (Voip) Ultimately Drove the Price of Calls Down to Nearly Zero.
Today, we are experienceing a similear transformation as a Global, Embedded Financial Layer Emerges with the Internet. This Will Ultimately Drive Money Transfer Costs Closer to Zero, Transforming A System Long Burdened by High Fees, Delays and Middlemen.
Stablecoins are the Application Driving this Evolution. The Maxim “Adoption is Slow Unil It Is Fast” CAPTures Their Explosive Growth in Recent Years. To get an Idea of Scale, Stablecoin Transaction Volume Surged Above $ 27 Trillion in 2024 – Surpassing Visa and MasterCard Combined. Today, there Are Stablecoin Providers, Such As Tether, That Hold More US Treasuries Thani Countries Like Germany and the Netherlands.
Stablecoins Are No Longer A Niche Experiment. They are becoming more deeply embedded in the Our Global Financial EcoSystem. As US LAWMAKERS DEBATE STABLECOIN Legislation, The Goal Should Be Clear: Reinforce The Dollar’s Dominance As the Global Reserve Currency While of TRACHNERS OF TULNERS OF THE TULNERS OF THE TULNERS OF THE TULD. This Should Include Many Important Players – Not Just Those Based in the United States.
Two Paths, One FutureCongress is at a Crossroads Between Two General Positions. One is a CLOSED-MARKET APRACH IN WHICH US-BASED STABLECOIN Issuers Wound Be Privileged Over Their Non-Us Competitors. This is Shortsighted and Will Ultimately Stifle Innovation.
The Other Approach is to Build A Regulatory Framework that Cultivates Fair and Free Global Competition. By ALLOWING INTERNATIONAL PLAYERS LIKE TETHER TO COMPETE ALONGSIDE US-BASED Issuers, The Us Can Foster a Dynamic Ecosystom WHERE The BEST IDEAS AND TECHNOLOGIES Rise to the Top. Competition is What Willd Drive Excellence.
There is a myth being perpetrated that only US-Based Issuers Back Their Tokens with Sufficient Reserves, Attest to Those Reserves, and Take Necessary Steps to Prevent. That simply is not true. Tether, The Largest Stablecoin Issuer, Assisted American Law Enforcement and Over 230 Law Enforcement Agencies in 50 Countries to Block $ 2.5 Billion Dollars in Illicit Activities Wor. The reality is that responsible stablecoin Issuers Exist Both Inside and Outside the Us (Tether, Who’s Based in El Salvador, Accounts For More Than Half The Stablecoin Market.))
Overly Restrictive Regulation Could Also Backfire on the US Economy. If Stablecoin Legislation Drives Foreign-Basted Companies Out of the Us, It Could Result in Decreated Demand for US Treasuries, Weaned Dollar Dominance and A LESSEACOCOSOCO.
Congress Stands at An Important Crossroads – “Two Roads Diverged” as Robert Frost Once Wrote. It Could Seize this Moment to Craft A Regulatory Framework that Champions Competition and Transparency, or It Could Take the Narrow Road by Taking A Protection. The Market’s Diversity is not a bug to fix. IT’s A Feature to Harness.
It’s Time to Make A Careful Choice As the Stakes Could not Be Higher. Let’s Make Sure We Get this Right for the Future of Finance.
Note: The Views Expressed in this Column Are Those of the Author and Do Not Necessarily Reflect Those of Coindesk, Inc. i Owners and Affilites.
