Wednesday, December 1, 2021
Home Tech Senate Banking Committee Inquires Into Stablecoin Issuers

Senate Banking Committee Inquires Into Stablecoin Issuers

The U.S. Senate Banking Committee has despatched letters to a number of stablecoin issuers to inquire about their operational options.

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  • In a Monday tweet, Ron Hammond, director of presidency relations on the Blockchain Association, stated the stablecoin issuers embody Coinbase, Gemini, Circle, Paxos, TrustToken, Centre, Binance U.S. and Tether. “This is likely a sign of an upcoming hearing,” he tweeted.
  • In the letters, the committee stated stablecoins pose investor safety dangers and lift a number of market integrity issues, as documented within the latest report by the President’s Working Group on Financial Markets.
  • The committee went on to say that although stablecoins are usually “minted” in change for U.S. {dollars} or different typical forex, “the purchase of stablecoins through a trading platform may not provide customers with the same rights and entitlements as a direct purchase from an issuer.”
  • Subsequently, the committee requested the stablecoin issuers to supply particular data together with primary purchases, minting course of, limitations, in addition to issuance and redemption knowledge. The committee additionally requested them to “summarize any internal reviews or studies [the] company has conducted about how specific levels of redemptions would affect [the stablecoin], including its convertibility into U.S. dollars, or would affect the financial position of [the] company.”
  • The stablecoin firms are requested to reply by Dec. 3.

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Wednesday, December 1, 2021

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