US Senate Committee on Banking held a hearing on the regulation of stablecoins

Senator Sherrod Brown has made some harsh remarks about cryptocurrency

15.12.2021 - 10:00

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1 min

What’s new? The Senate Committee on Banking, Housing, and Urban Affairs held a hearing on the topic “Stablecoins: How Do They Work, How Are They Used, and What Are Their Risks?” The Chairman of the Committee, Sherrod Brown, gave a monologue about stablecoins and called them the “new fantasy economy.”

Link to the hearing recording

What did Sherrod Brown state? In his monologue, the Senator argued that people who use stablecoin risk their money in unstable and sometimes fraudulent markets. Brown remarked that the industry needs more in-depth study. The senator understands people's distrust of banking systems, but he suggested:

“A big tech scheme, because of which Americans risk their money, is not the answer either.”

What did the hearing’s other participants say? Alexis Goldstein, Director of Financial Policy at the Open Markets Institute, added that stablecoins are not promising because they do not meet the basic requirements, namely, low fees, predictability, and the possibility of exchange for goods and services.

Jai Massari, Partner, Davis Polk & Wardwell, supported the idea of controlling stablecoins, arguing that “commonsense regulation for cryptocurrencies should take into account their risks and benefits.”

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