The Stablecoin forum is skeptical and the USD Duo is heading in the opposite direction.

Last week, the cryptocurrency industry held its first conference titled “The Future of Real Estate and Finance: Understanding the Challenges and Benefits of Trading US Currency”. The meeting was chaired by Maxine Waters, President of Home Finance Group. Over 50 committee members attended and had the opportunity to share their thoughts on the crypto industry and policies. Representatives of cryptocurrency companies at the hearing, including executives from Circle, FTX, Bitfury Group, Paxos, Stellar, and Coinbase, championed the cryptocurrency market and explained the future of crypto technology. currencies to legislators.

Thanks to online advertising, many in the cryptocurrency community feel that after the hearing, the harassment of cryptocurrency lawmakers has decreased compared to the past, and they are amazed at the big ones. friends of leaders and legislators. FTX CEO Sam Bankman-Fried said in an interview, “I am very happy that members of Congress have received this. It is very rewarding.

In the wake of discussions between Congress and the cryptocurrency market, the Senate Committee on Finance, Housing and Urban Affairs yesterday held a hearing on the stable coin. “Stablecoins: how they work, how do they use them and what are they?”.

The people present at the hearing are:

-Alexis Goldstein, director of financial policy at the Open Market Institute.

-Jai Massari, cryptocurrency trading expert and partner of the Davis Polk Financial Institutions Group.

-Dante Disparte, Strategy Director, thiab Global Policy Officer, Circle Stability Issuer

-Hilary J. Allen (Hilary J. Allen), professor at American University Washington Law School.

The purpose of this hearing depends on the security and legality of the fixed room. In his opening remarks, President Sherrod Brown pointed out that this large number gives cause for optimism, given the continued improvement in the cryptocurrency industry, which recently surpassed $ 3 trillion. industrial capital. However, many cryptocurrencies cannot be used for payments due to rapid fluctuations in exchange rates and high exchange rates, and a stable currency should be able to solve this problem. Cryptocurrency proponents think securities are better than real money because they are fair and transparent, but they don't think securities are both.

Last month, the Financial Services Company sent letters to several brokerage firms, including Coinbase, Gemini, Circle, Paxos, TrustToken, Center, Binance US, and Tether. In its letter, the Board requested the consultants to provide information on outright purchases, issuance procedures, restrictions, announcements and redemptions, as well as information on redemptions (including conversion to US dollars) .

During the hearing, Brown said the answer from stable companies was unclear, so lawmakers couldn't believe most consumers could afford more protection after buying securities at fixed income.

“Cryptocurrencies can explode by almost 30% as the cryptocurrency market goes down. One day, history tells us that if there is an out-of-market investment, we should be worried. saw at "Dogeecoin", a cryptocurrency that immediately rose in value when a tech expert tweeted a thousand dollars.

“I've heard time and time again from experts in the crypto industry that over-regulation can hurt innovation, that free trade can solve any problem, and that the United States should have a “Global competition. But without rules and regulations, innovation can put you at risk ”. "

At that hearing, representatives for both sides spoke for only two hours, which wasn't long, but it turned out to be more controversial than last week by a five-hour cryptocurrency case. During the hearing, critics and commentators for the stable play expressed their views and generated a lot of controversy. Below is a selection of speeches given by representatives of each Bayes Institute party.

Senator Patrick J. Tumi (Patrick J. Tumi)

The other presiding judge, Toumi, had a different opinion of the president. He believes that stable coins can lead to lower payments, especially cross-border traffic, lower costs and be closed by non-negotiable and transparent exchanges. Help prevent financial transactions and financial fraud.

Tumi agrees that the stable room needs a new administration. “Financial security needs to be strong and consistent in the United States and around the world. US regulators need a private statement to ensure that "US Stabilitycoin is the global stature of the US dollar," but well-regulated stability could help regulation should allow stablecoins to interfere with current financial processes. "

Tumi announced the financial stability policy on the financial institutions website before the hearing began, but the “Stablecoins Supervision Report” and “Stablecoins Should Not Be” released by the chairman of the Stablecoins Task Force. financial services last month. insurance depository. "

Toumi announced the following points that will affect his future legal career in the firm:

· Term deposits should not be limited to banks.

o First of all, the economic model of financial stability is different from traditional banks.

o Second, the need for full financial stability as banks will affect innovation.

o Third, oversight of payroll activities should establish a level playing field.

· Stablecoin issuers choose from at least three management modes depending on their business model.

o Work in accordance with normal banking rules.

o Under the new law, special chartered banking purposes have been established specifically for fixed financial institutions.

o Register as an existing national remittance company and as a government remittance service provider FinCEN.

· All securities traders should have clear health insurance policies, set rules for assets that support securities, and respect available resources and resources.

· Companies should be able to issue stable coins if they follow this procedure.

· Fixed coins without interest do not need to be regulated in the safest possible way.

· Administrators should protect the privacy, security, and confidentiality of users of secure rooms, including users who choose not to share information with third parties.

Financial regulation must comply with secrecy law which must be updated to include the latest technology such as fixed coins, including traditional financial institutions.

yaj masari

Jay Massari, partner of Davis Polk Financial Institutions Group, is a lawyer specializing in the crypto industry and advocates for good governance of fixed income coins.

“Stablecoin issuers should be prevented from holding assets to secure the proceeds of these investments,” Masari said.

He also stressed that investors should comply with existing federal laws regarding the protection and prevention of financial crimes, such as money laundering and the misuse of cryptocurrencies and financial fraud (DeFi) is an issue. major in this field. for

A difficult question, however, is whether venture capital firms should be regulated like banks (e.g., traditional banks) or registered with special banks based on specialized business models. The chairman of the financial services task force is Biden's chief executive at the company and calls for this approach. Critics of this approach point out, however, that it does not function like a bank, as it does not allow stable businesses to lend money. for

“Reporting stable returns is different from existing banks, so I don't think it makes sense to offer traditional banking policies to bank investors. The benefits are stable. "

Dante Disparte

Dante Dipart, CEO and head of international policy at Circle, the issuer of securities bitcoin, told lawmakers that the coin's “business” responsibility is based on payments. Income has grown steadily, especially in traditional financial companies. Visa recently launched USDC payments and Circle recently partnered with MoneyGram to handle international money transfers.

He also believes that managing financial management (DeFi) will lead to faster, cheaper and more transparent business, which reflects the controversy that erupted last week or the cryptocurrency. for

Dispat said, “In a new economy, still in business, I think people will have a choice to change their money. It has a huge impact on American interests.” The country and our people love it. We need the money and the money is not needed. Banks are closed.

Dispat did not deny that some blockchains are currently slow or expensive, but urged lawmakers to build on new developments in the area of ​​fast commerce. “The early blockchains were somewhat similar to dial-up Internet access. Now familiarity with some early blockchains is slower and can be a little cheaper, so the money restriction proposal is stable. The innovation ignores the fact that innovation has not stagnated.

Alexis Goldstein

Alexis Goldstein, director of monetary policy at the Open Market Research Institute, argues that hard currencies can accelerate income, and argues that hard currencies are a problem for low-income families because of their high cost and lack of harmony and perspective. The implications are inconsistent.

Goldstein quoted a recent World Trade Forum report: “Stable coins are not good for financial accounting because they have the same or greater impact on currency options. Western Union money is cheaper. "

Every time a user leaves the cryptocurrency market and trades cryptocurrencies from one wallet to another, or fiat, they will lose their value fast. for

Goldstein described his financial experience in 2007 and 2008:

Goldstein also criticized the deal between Circle and Coinbase during the hearing, where Coinbase could “benefit from USDC”. “These gains could be significant as USDC grew rapidly in 2021. Coinbase does not charge consumers for USDC purchases, but it does not support the purchase of Tether (crypto assets etc.) and other competitive prices, "the statement said. noted. This raises the price discrimination of the stable currency and the problem of sending consumers to the USDC. "

Hillary J. Allen

Alan Hilary Allen, professor at the American University of Washington School of Law, agrees that the security of Massari coins requires proper care, but it is an enemy of crypto.

He believed that stable banks should not be regulated like banks, but for many reasons. In his view, if treated like a bank, the Fixed Coin will become legal and the entire DeFi industry will be legalized, which is not guaranteed to pose a physical threat. . for

"I don't think DeFi can develop without a stable coin. Now I think DeFi has been restricted enough that it doesn't affect financial security. But if it does, DeFi will be a real threat. Especially with us. … Is intertwined. "

So, until the risks of DeFi are better understood, stablecoins only work in important ways, not commercially. for

The journey of the Stablecoin duo is very different.

At today's hearing, Circle announced the launch of the USDC Stable Coin on the Avalanche blockchain network. The circle indicates that USDC's support for Avalanche will allow more developers to develop Payment Application (DeFi) applications.

USDC currently ships to the Ethereum, Solana, TRON, Stellar, Avalanche, and Hedera blockchain networks.

During that hearing, lawyers for Dispat of Circle and Masari jointly developed a set of stable governance procedures that restricted the types of assets that securities investors could own and create. for

On the same day, Tether, the announcer for USDT's stable leader, also participated in the class action lawsuit.

According to official documents, two defendants in New York's Southern District Court, Matthew Anderson and Sean Dolivka, accused Tether of defrauding consumers over the status of the USDT token, which they also called "illegal criticism" and false ". Misrepresentation, USDT is not a stable currency and is not a support for the US dollar. They also criticized Tether even though it promised it was transparent to its customers and controlled less than 4% of its cash flow. , expert review It has also been argued that breach of Tether's contract could result in "compensation and damages" for the plaintiffs and their members.

In response, the claimant and the law firm sued Tether, claiming the claim was "false" and "misleading."

Tether is often sued for mismanaging funds and manipulating USDT's reserves. Earlier in September, the U.S. District Court for the Southern District of New York City dismissed a class action lawsuit involving five cryptocurrency dealers. Proxy will buy at a higher price in 2017. Currency causes financial losses.

It should be noted that Tether did not attend the cryptocurrency hearing last week and this hearing is closed.

According to Block's data, the USDT remains a stable currency, but the USDC has emerged as one of its biggest competitors, accounting for almost a third of the world's stable currency. .