Ripple CEO predicts clarity on US regulation of stablecoins this year

Brad Garlinghouse noted that “the stablecoin market has really surprised people in some ways in terms of solving a real need”

22.01.2024 - 12:54

905

3 min

What’s new? Brad Garlinghouse, the head of the fintech company Ripple, believes that regulatory clarity for stablecoins in the United States will come in 2024. He said, “the stablecoin market has really surprised people in some ways in terms of solving a real need, and I think it only makes sense for there to be regulatory clarity around that I think that’s good for the whole industry.”

Video on YouTube

What else is known? Garlinghouse says that stablecoins like USDT and USDC will remain, and if they have “skeletons in their closet,” they will come to light once clear rules for the industry are established. In addition, he expects to see new entrants in this market.

Circle CEO allows the possibility of passing laws to regulate stablecoins in the United States this year

Last year, the bill to regulate payment stablecoins was approved by the specialized committee of the lower house of Congress

The businessman believes that the adoption of relevant legislation is also wanted by the authorities themselves, in particular the US Treasury Department.

Last July, the bill on payment stablecoins was approved by the House Financial Services Committee. The document proposes to regulate stablecoins similar to traditional financial companies. The proposal has now been referred to the full House of Representatives for consideration.

Ripple CEO calls SEC a “hostile regulator”

Brad Garlinghouse noted that the company is considering going public outside the US

Earlier, the media reported that the world’s largest investment company BlackRock does not yet intend to launch a spot exchange-traded fund based on the XRP token issued by Ripple because of its uncertain legal status.

The Markets in Crypto Assets (MiCA) Act, which regulates the rules governing the issuance of cryptocurrencies and stablecoins and related services, is gradually coming into force in the EU. Although it will not be fully implemented until mid-2026, authorities urged to prepare in advance.

Late last year, the Bank for International Settlements (BIS) proposed to tighten the requirements for issuers of stablecoins applying for preferential regulation.

Author: