• The Digital Assets Financial Technology Inclusion Committee held a hearing on May 18 to discuss stablecoin policy.
• Lawmakers aim to support stablecoins as a recognized payment method and pass appropriate regulatory framework.
• FATF head urges G7 to bring order to ‘lawless crypto space’ and Filecoin Foundation rejects SEC’s classification of FIL as security.
Stablecoin Policy Hearing
The Digital Assets Financial Technology Inclusion Committee held a hearing on May 18, 2021 to discuss potential policies for stablecoins. Congressman French Hill opened the meeting by stating that it is the committee’s goal to put forth legislation in support of stablecoins as a recognized payment method. He highlighted the need for legal clarity and consumer protection within the stablecoin ecosystem and emphasized the power of committee members in reversing U.S crypto flight.
Lawmakers Support Stablecoins
Lawmakers showed bipartisan agreement on regulating stablecoins and finding ways to ensure consumer protection when using them as payment methods. They expressed their views on two proposed policies and discussed how they could be implemented in order to increase safety for users when trading with digital assets like cryptocurrencies or tokens.
Regulatory Authority & Oversight
The chairman of CFTC stated that the commission does not have authority to regulate cash crypto markets, while FATF head urged G7 countries to bring order into what he described as “the lawless crypto space”. The Filecoin Foundation also rejected SEC’s classification of FIL as security given its decentralized nature and lack of control over its network participants by any single entity or individual.
Volumes Decline & Pros Enter Market
As lower volumes are seen in NFT markets, experts predict that this market will become an exclusive game for pros in 2023 due to its complexity and higher entry barriers caused by increased competition from more experienced traders entering the market at that time.
Overall, lawmakers showed support for developing regulations which would make it easier for consumers to use stablecoins when making payments safely without fear of losing money due to fraud or other risks associated with digital asset investments like cryptocurrency or token trading. Additionally, experts expect volumes in NFT markets will decline until 2023 when more experienced traders enter this field specializing in NFTs only, making this market an exclusive game for pros only at that time