In United States does not seem like a very favorable time for cryptocurrency. While analysts are wondering what could happen in this regard with the next change at the White House, also in relation to the moves that should be adopted in response to the upcoming debut of the digital yuan, the stars and stripes political world carries out a series of initiatives which do not seem to go in the direction desired by the world of cryptography. As a bill presented by Rashida Tlaib with the specific intention of going to regulate the sector of stablecoin.
Rachida Tlaib's bill
Rashida Tlaib, representative of the Michigan House, presented a new bill to Congress, with which it proposes eliminate stablecoins that move outside the legislative boundaries. Project developed together with members of Congress Jesus Garcia e Stephen Lynch and presented on December 2 in a press release.
Lo Stablecoin Tethering and Bank Licensing Enforcement (STABLE), as the measure is called, according to the proponents would have the intent to go to raise the level of protection that US citizens currently enjoy against the risks associated with the rapidly growing cryptocurrency market in the United States. In the event that Congress approves it, companies that provide stablecoin-related services they will have to receive approval from multiple authorities. Otherwise, their operations would be considered illegal.
The statements of Rashida Tlaib
It was Rashida Tlaib who best explained the meaning of the provision. According to which financial innovation needs to be better controlled. Unlike what the administration did Trump, which has focused on deregulation in the sector. But opening the door to enormous risks for US citizens.
An intent also remarked by Stephen Lynch, who wanted to point out how digital assets are a positive novelty. Provided they are subject to very strict controls, so as not to overflow and turn into a danger for citizens. As indeed has happened in some cases in the past, even recently, when some companies in the sector have taken advantage of the loose meshes of the system to implement non-transparent or openly fraudulent behavior. Which is still discussed in courtrooms, particularly in the United States.
The opposition of cryptographic environments
However, the crypto community's opinion on Rashida Tlaib's bill seems very critical. Second Contact Meltem directly, chief strategy officer of CoinShare, digital money has taken on the task of lowering the cost of the service in recent years for those segments of the population that have long been excluded from the banking sector. If the Stablecoin Tethering and Bank Licensing Enforcement passes, the result would be paradoxically contrary to what Tlaib is proposing. That is, it would cut out of the market precisely those social groups that it would like to protect, in that obligations and costs would increase. A judgment shared by Jeremy Allaire, co-founder and CEO of Circle. Who expressed his opinion on Twitter, stating in particular that the law would result in a brake on the spread of digital money in the United States. In practice, limiting the possibilities of development in the decentralized finance sector and in that linked to technology blockchain. However, without specifying why stricter regulation should produce these effects.