There might be a new federal law targeted at regulating stablecoins by the end of the year 2022, lawmakers reveal at Consensus 2022. Consensus is one of the yearly gathering of cryptocurrency users, experts, and blockchain technology enthusiasts- crypto participants generally
The three days gathering gives room for proper assimilation of the rudimentary aspects of the Cryptocurrency space and Blockchain technology. It gives a massive learning experience for participants.
The event, which kick-started on June 9th in New York, United States. Is said to run through July 12, 2022.
With about 89 speakers, 4 exhibitors,2 contestants, and 171 sponsors.
Speakers at the consensus acknowledged the different Communities that make up the attendees, ranging from cryptographers, seasoned developers for well-known Cryptocurrencies, traders, and Wall Street big shots.
Among the speakers was Sen. Pat Toomey (R-Pa.) In his statement said:
“I’m going to go out on a limb and say we get stablecoins done this year,”
This came as a result of Lawmakers expressing fears over the lack of regulatory measures on crypto and crypto products, the recent misfortune of terraUSD (UST) adds more vinegar to the sour soup.
The Lawmaker further added:
“We’re going to need to have regulatory certainty about that, I know the Biden administration is interested in doing something in this space.”
Nevertheless, passing a bill in the little time allocation left in 2022 seems like a good idea that lacks feasibility, some people might think, but this ideally expressed the viewpoint of Pat Toomey seems to be shared by attendees.
Another issue shared during this dialogue was the issue of crypto taxation. Gillibrand and Sen. Cynthia Lummis (R-Wyo.), members of the Consensus 2022 panel, suggested that for crypto taxation and supervision to be resolved there has to be a bill, which she proposed.
The United States regulation law would perhaps require platforms issuing stablecoins to have more solid reserve structures and disclose holdings, helping curb the likelihood of a repetition of the market disaster with terraUSD’s collapse.
On a broader scale, the law would give stablecoin issuers more understanding as to whom reports are to be made. This would in turn put an end to the tussle of overseer role between rival regulators, Commodity Futures Trading Commission, U.S. Securities, and Exchange Commission.
With the regulations which might be pegged on stablecoins, issuers of stable coins can now be termed banks. Would these coins still maintain their true decentralized features and nature?