While US financial regulators are cracking down hard on the crypto industry, the US dollar is distancing itself from its hegemony. This situation worries the American authorities who are considering measures to solve the problem. The CEO of Stellar Development Foundation weighed in on the matter during an interview with Bloomberg on April 11. Discover the statements of Denelle Dixon.
Here’s why the US needs to quickly regulate stablecoins
Denelle Dixon is among those who believe that stablecoins need to be regulated. The CEO of Stellar Development Foundation argues that this is the key to maintaining a strong dollar. She said: “If we want a strong US dollar globally, a dollar stablecoin is the way to get there“. She explained that the United States and the dollar will suffer if stablecoins are not regulated this year.
After all, the vast majority of these assets are tied to the US dollar. It must be said that stablecoins currently represent around 10.5% of the total market capitalization of cryptos. These digital assets also represent $133 billion in circulation. “There will be companies outside of the US that are more crypto-friendly“said the CEO.
That said, Denelle Dixon stays optimistic about the establishment of a regulatory framework appropriate for dollar-backed digital assets. She said : “They want to set the standard“. She added that the United States has no choice anyway. “There will be companies outside the United States and there will always be the problem of American consumers wanting to take advantage of this technology“, explained the leader.
Furthermore, the CEO of Stellar Development Foundation believes that regulation of stablecoins must go through Congress. She pointed out that there should be more emphasis on the usefulness and value of cryptos for users. “Stop talking about technology and start demonstrating utility“, she clarified.
According to Denelle Dixon, “if we do nothing in the US, we will end up in a bifurcated world where we will have more crypto-friendly legislation outside of the US“. The CEO of Stellar Development Foundation is probably right on this point. In this regard, the EBA is currently preparing to regulate stablecoins according to the MiCA regulation.
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