Former Chairman of the Commodity Futures Trading Commission Timothy Massad pushed for new regulations on stablecoins.
Stablecoins are a type of crypto token that is meant to be backed up by real assets. One stablecoin is equivalent to a dollar.
CNBC quoted Timothy Massad, former chairman of the Commodity Futures Trading Commission.
On Monday, the government and market should not ignore the stablecoin in hopes that it would disappear.
Stablecoins are cryptocurrency tokens that are backed up by real assets. One stablecoin is equivalent to one dollar. Massad stated that these coins can act as a "bridge between the crypto world and real life."
He added that he was not concerned. "I believe our regulators are often of the opinion that it is better to just keep them outside the regulatory perimeter. But I don't really think that works. And I think the competition from stable coin could be useful if we address these risks, which are significant.
Massad has publicly advocated for immediate crypto regulation that would protect investors, without having to wait for years for litigation or laws to be rewritten. Massad, along with former Securities and Exchange Commission Chair Jay Clayton, penned a op-ed piece in the
Wall Street Journal
Earlier in July, I argued that the SEC should form a joint CFTC with the SEC.
Create basic standards to prevent fraud
Massad believes stablecoins could be a way to speed up payment in the United States. He said that the United States has a slower and more costly system than other countries. He said that if stablecoins were regulated in the U.S., other countries would follow. However, he also noted that many countries have already created their own frameworks.
He said that stablecoins, despite their limited usage, are already forcing banks to reevaluate their systems and consider ways they could improve.
Massad: "I sympathize with a lot people in government who say, 'we're not really convinced of the use-case here, we can't see the value in the real world.' "But sometimes, it takes a while to discover the value."
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