Crypto Advocacy Group Raises Concerns About Stablecoin Bill

Crypto Advocacy Group Raises Concerns About Stablecoin Bill

Cryptocurrency advocacy groups have raised their concerns about the stablecoin bill. The article noted that Coin Center a crypto advocacy community voiced the concerns on behalf of investors that stablecoin bills directed towards algorithmic stablecoins can create constitutional challenges.

Stablecoin Bill to Violate Free Speech Rights of Citizens

The group noticed that the bill has the potential to breach the first-amendment rights of investors by infringing their freedom of speech.

The firm was referring to a bill introduced in the Senate for setting regulatory framework and guidelines for stablecoins for mode of payments. On 19th April, Coin Center declared that the bill presented by Senators Lummis and Gillibrand namely the Payment Stablecoin Act can harm the public interest and unconstitutional in nature.

The group further noted that banning algorithmic stablecoin is a type of targeted code that violates the first amendment rights.

The firm noticed that it was sensible to mandate registration for stablecoin issuers such as Terra and ensure timely disclosures. However, implementing a complete ban on a specific business model was unnecessary and discourages innovation.

The firm retained that if these products are able to comply with security laws then it should be granted permission to trade on spot markets.

Importance of Regulatory Framework for Stablecoins

Jerry Brito, executive director of Coin Center told the media that the regulatory framework for stablecoins in the United States was a viable effort. He further noted that the text of the bill ensures that only US-approved issuers are allowed to issue dollar-backed stablecoins. House of Representatives and Senate are working in tandem to make legislative solutions for stablecoins.

Coin Center further noted that the Clarity for Payment Stablecoins Act will soon go up for a full floor vote in the House. The group retains that the bill was an unreasonable approach to algorithmic stablecoins by imposing a two-year exodus rather than the comprehensive ban.

In 2022, Terra (UST) de-pegging from USD resulted in a bear market. A series of firms filed for bankruptcy and US authorities and regulatory agencies continued to pursue criminal and civil charges against illegal actors.

Speaking on the matter, Senator Sherrod Brown who chairs the Senate Banking Committee issued a statement on 16th April claiming that the stablecoin bill will be one of his goals. The Senator further noticed that his main concerns regarding stablecoins were addressed.

At the same time, there are no plans in the House to schedule Clarity for Payment Stablecoin Act when a floor vote takes place.

Stripe to Enable Crypto Payments with a New Stablecoin Feature

Another Cointelegraph article noted that Stripe consumers will be able to make USDC payments starting this summer season. The president Jack Collison noted that after the firm canned Bitcoin payments in 2018.

Payment service Stripe is backward of crypto payments in the form of stablecoins. Co-founder and President John Collison noticed that the new service will start during ongoing summer.

The executive stated that cryptocurrencies have now become a viable mode of exchange. He was addressing the public at the developer’s conference at San Francisco on 25th April.

Since disabling Bitcoin transactions in 2018, transaction speed has increased and fees have decreased with stablecoin becoming more stable. He stated that the crypto winter of 2021 did not make much impact on stablecoins.

He further stated that the firm was reverting to digital assets as a mode of payment but this time with a much better experience with stablecoins. Collison noted that the USD coin is dollar-pegged that posit it as a store of value.

He noticed that it was a very good product to make transactions. Collison before displaying a chart of stablecoin utility versus the fiat currencies traded across trading platforms. Collison also demonstrated a stablecoin transaction on stage. He announced that the service will provide USD coin payments on Solana, Polygon, and Ethereum networks. Stripe adopted Bitcoin payments in 2014 and discontinued it after 4 years.

Richard Dodson
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Richard Dodson

Richard Dodson, a titan in crypto journalism, delves deep into the blockchain ecosystem with clarity and precision. With an innate ability to simplify intricate details, Richard's articles demystify the world of digital assets. His authoritative voice and profound insights make him a go-to expert in cryptocurrency discourse.

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