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Topic: The United States turns its attention to stablecoin regulation. (Read 302 times)

hero member
Activity: 2632
Merit: 787
Jack of all trades 💯
Of course they want to regulate the stable coins because for sure they don't like that someone else is issuing a digital dollar, and they want to be the only ones to do it. Unfortunately the UST situation will accelerate this process.

Agreed. Actually they might be the one behind this attack because recently SEC do a comment for UST before this depegging happened. It's ironic how the timing of the attack on UST and LUNA coincides to the time when SEC is imposing proper regulation on all the ongoing stable coins right now. It just happened that UST is new and has a lot of vulnerability which is an easy target for attack like this. Poor UST.

I'm not inclined to see it that way.  UST and USDT are categorically not a "digital dollar".  They are IOUs, which unscrupulous companies are thrilled they've managed to dupe so many people into believing are digital dollars when they aren't.  You two serve as a prime example why regulation is sometimes necessary.  You've been manipulated by these companies and you don't even realise it.

Many people think it is because it was pegged to dollars so hopefully they know now the risk for having it since for what UST experiencing now they might lose their money for unwanted events. Lets just hope for now that things will go better because its really bad to see them dropping because it creates fear to the whole market also especially that LUNA is creating bad market taste to the investors or holders.
legendary
Activity: 3934
Merit: 3190
Leave no FUD unchallenged
Of course they want to regulate the stable coins because for sure they don't like that someone else is issuing a digital dollar, and they want to be the only ones to do it. Unfortunately the UST situation will accelerate this process.

Agreed. Actually they might be the one behind this attack because recently SEC do a comment for UST before this depegging happened. It's ironic how the timing of the attack on UST and LUNA coincides to the time when SEC is imposing proper regulation on all the ongoing stable coins right now. It just happened that UST is new and has a lot of vulnerability which is an easy target for attack like this. Poor UST.

I'm not inclined to see it that way.  UST and USDT are categorically not a "digital dollar".  They are IOUs, which unscrupulous companies are thrilled they've managed to dupe so many people into believing are digital dollars when they aren't.  You two serve as a prime example why regulation is sometimes necessary.  You've been manipulated by these companies and you don't even realise it.
copper member
Activity: 2268
Merit: 539
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We can see that this country shows some interest in helping cryptocurrencies, perhaps to facilitate the operation of these platforms, either for its own benefit or for its citizens.

At last US showed the interest in cryptos.
There were some rumours already in the market about the same.
Now it’s great it’s somehow officially announced.
The US government has now understood the revolutionary asset and it’s importance.
For this reason they are now on a voyage to make the stable-coins part of their eco system.
Let’s hope this movement will help us to come out of the bearish market and at last we will make good profits from it.
legendary
Activity: 2380
Merit: 2369
¿What do you think of the direction the US is taking with stablecoin regulation?
Of course they want to regulate the stable coins because for sure they don't like that someone else is issuing a digital dollar, and they want to be the only ones to do it. Unfortunately the UST situation will accelerate this process.
legendary
Activity: 3010
Merit: 1460
In any case, are you following the news on UST's depegging?
Technically speaking centralized shitcoins whether it is UST or USDT or others are not really pegged to anything. They all function based on faith and a hope that users are going to continue using their shitcoin at the designated price but when that faith goes away or when a massive dump occurs these shitcoins crash hard. The biggest one is still Tether but that too has gotten dumped in the past and there is nothing they can do about it.
These things are only creating headaches in bitcoin world.

I very much agree. Something similar can also be argued on fiat currencies. Inflation in America is presently 8% according to some articles. This could be implied that the American dollar has depegged 8% hehehe.

Also agreed on tether and the headaches they create in the cryptospace. We have argued about this in my big short thread for months and it appears that some people beginning to see the possbility of tether as a systemic risk.

legendary
Activity: 3934
Merit: 3190
Leave no FUD unchallenged
In any case, are you following the news on UST's depegging? It also appears that this might become a storyline where the regulators can argue for a ban on all stablecoins instead of regulating them hehehe. This will certainly reduce the market size of the cryptospace in America.

It's a market where the trash, sooner or later, takes itself out.  If these so-called stablecoin projects are as weak as they as they appear to be and if people are foolishly "investing" in them as readily as they appear to be, there's definitely room for the market to get a lot smaller.  I'm okay with that, because I understand that it can't function any other way. 
legendary
Activity: 3472
Merit: 10611
In any case, are you following the news on UST's depegging?
Technically speaking centralized shitcoins whether it is UST or USDT or others are not really pegged to anything. They all function based on faith and a hope that users are going to continue using their shitcoin at the designated price but when that faith goes away or when a massive dump occurs these shitcoins crash hard. The biggest one is still Tether but that too has gotten dumped in the past and there is nothing they can do about it.
These things are only creating headaches in bitcoin world.
legendary
Activity: 3010
Merit: 1460
@DooMAD. Agreed, however, the insiders of Blackrock and Fidelity might be thinking about this differently if they are investing in USDC.

In any case, are you following the news on UST's depegging? It also appears that this might become a storyline where the regulators can argue for a ban on all stablecoins instead of regulating them hehehe. This will certainly reduce the market size of the cryptospace in America.
legendary
Activity: 3934
Merit: 3190
Leave no FUD unchallenged
One of them might be USDC. It is centralized but Fidelity and Blackrock appear to be confident that the regulators will not use regulatory pressure to shut it down. They know the market more than us.


Circle Internet Financial, a global internet finance firm and the issuer of USD Coin (USDC), today announced it has entered into an agreement for a $400M funding round with investments from BlackRock, Inc., Fidelity Management and Research, Marshall Wace LLP and Fin Capital. The funding round is expected to close in the second quarter.

Source https://www.prnewswire.com/news-releases/circle-announces-400m-funding-round-301523647.html

Eew.  Not a fan of Circle.  Their first foray into running an exchange was a spectacular failure.  Then they had the gall to try to blame Bitcoin developers for their own lack of success.  After that, they took over Poloniex, which immediately plummeted in popularity.  Everything they touch turns to shit.
legendary
Activity: 3010
Merit: 1460
Anyone holding stablecoins at the moment needs to seriously consider their options.  Centralised entities are easy targets for regulators and law enforcement.  If they identify impropriety and decide to take action, some of these so-called currencies could easily be shut down.  You don't want to be holding them when that happens.

Agreed. This is why I was always very cautious on Tether. However, I speculate that there might be 1 or 2 stablecoin issuers that will be favored by the American government. One of them might be USDC. It is centralized but Fidelity and Blackrock appear to be confident that the regulators will not use regulatory pressure to shut it down. They know the market more than us.



Circle Internet Financial, a global internet finance firm and the issuer of USD Coin (USDC), today announced it has entered into an agreement for a $400M funding round with investments from BlackRock, Inc., Fidelity Management and Research, Marshall Wace LLP and Fin Capital. The funding round is expected to close in the second quarter.

Source https://www.prnewswire.com/news-releases/circle-announces-400m-funding-round-301523647.html
legendary
Activity: 1162
Merit: 2025
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So did the USA government realize that stablecoins are already a big foe to their incoming digital-Dollar or they are planning to integrate stablecoins to their future digital dollar?

That's what I was wondering. The thing is that the CBDC digital dollar is still years away from being launched and I guess regulation will do until then but once it is in place, I don't see much point in a stablecoins pegged to the USD if you are going to have a shitcoin issued by the FED which is the USD. Better the original than the copy, I'd say.

The way I see it, there is no warranty the CBDC's will provide the liquidity to the crypto market that the stablecoins have, not even mention that CBDC's wallets will likely be associated to a person (name, nationality, residence, social security number) while stablecoins only require a crypto-address. Obviously, the government of the United Stated would be happy if they could replace stablecoins with their incoming digital coin on exchanges, that would be helpful for them to catch tax-evasion, criminals and whatnot at cost of our privacy, that is.

If they are planning something like that, they have a quite a long way to go before they achieve it, who knows, perhaps a Tether/Stablecoin scandal would come handy for them to accelerate things and convince us we are better withdrawing our gains directly to our new, nice and clean centralized CBDC wallet. I would expect stablecoin FUD in the near future.

So did the USA government realize that stablecoins are already a big foe to their incoming digital-Dollar or they are planning to integrate stablecoins to their future digital dollar?

Also, what do they plan to do about decentralized stablecoins?
Will they force Centralized exchanges only to operate with "licensed" stablecoins or else they get in trouble?

I can easily see Binance and Coinbase announcing they would cease to work with DAI because the suits told them so.  Roll Eyes

Yes, there are still a lot of questions. You need to know the essence of the upcoming stablecoin trust law before commenting on it. It seemed to me that states, in any case, would be unfriendly to private and commercial stablecoins using their currency as collateral. In any case, government regulation of these stablecoins is necessary, because only in this way can we get rid of the recurring abuse scandals in this area and increase their credibility.

I would not like if they tried to exclude decentralized options like DAI off exchanges because a -license-.

sr. member
Activity: 2352
Merit: 245
So did the USA government realize that stablecoins are already a big foe to their incoming digital-Dollar or they are planning to integrate stablecoins to their future digital dollar?

Also, what do they plan to do about decentralized stablecoins?
Will they force Centralized exchanges only to operate with "licensed" stablecoins or else they get in trouble?

I can easily see Binance and Coinbase announcing they would cease to work with DAI because the suits told them so.  Roll Eyes




Yes, there are still a lot of questions. You need to know the essence of the upcoming stablecoin trust law before commenting on it. It seemed to me that states, in any case, would be unfriendly to private and commercial stablecoins using their currency as collateral. In any case, government regulation of these stablecoins is necessary, because only in this way can we get rid of the recurring abuse scandals in this area and increase their credibility.
hero member
Activity: 2422
Merit: 875
Governments have never shown any interest in helping anything that is "decentralized" that would reduce their power and control over money. None of the things they would ever do is going to help anything in decentralized world, specially the US government that has never looked kindly on those who would go against the USD dominance.
When it comes to stablecoins, they are simply printing money which is illegal. So if anything the government is going to shut them down in the name of "regulations".

They probably won't even do anything about Tether USD which has long been accused of being a market manipulation tool of Bitfinex (its parent company). But if this aspect inconveniences the payment processors too much - the ones who will integrate  it like  PayPal for example - they would simply shut it down or at least prevent it from operating in the USA (I still can't see PP  adding USDT coins to its features ever).


So If they want to regulate the stable coins, does it also means that they may take serious action against the Tether USD which is not being properly backed by the US dollar. If this happens, it will create the biggest panic ever in the history of cryptocurrencies.

I do hope that in all these stablecoin regulations, there is not any hidden agenda to put a dent in the growth of cryptocurrencies.  Sad
hero member
Activity: 1400
Merit: 770

We can see that this country shows some interest in helping cryptocurrencies, perhaps to facilitate the operation of these platforms, either for its own benefit or for its citizens.

They are trying to regulate and supervise crypto. They are trying to match it with innovation in the hope that crypto cannot develop. In addition, the actual stable in the market today is not so attractive to investors. At least indeed they support crypto, but they also do not want to let go by regulating and like that is very contrary to decentralization. Let's wait to see how their system will work. I'm sure they don't want their fiat to be displaced by other technologies.
legendary
Activity: 3248
Merit: 1402
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I don't use stablecoins and I do think there's a special danger in them, so I think it's good they'll be regulated. The danger comes from the fact that it's not hard to look and see how volatile cryptos are, and to realize that buying them and hodling them involves certain risks. With stablecoins, however, the situation is very different. They seem to not be volatile, so people believe in their stability. However, they're not stable due to strong state budget and financial policies behind them (unlike fiat), and they are not fully supported by any valuable resources like gold, so they can collapse if there's enough panic going on or if something fishy is done by their creators/dev teams.
member
Activity: 1218
Merit: 49
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In my own humble opinion, one of the big reasons why I am supporting good regulations with anything that has something to do with cryptocurrency and to some extent stablecoins is because I am sure that with a regulatory framework we can start to weed out bad players and all players in the market will have to be careful because they can then be openly prosecuted by the law in case there will be violations or if some people can be victimized by the operators. We just have to make sure that regulations are not in there to kill the industry but to make it even more alive and well...with a level playing field for all.
legendary
Activity: 2576
Merit: 1655
I think with the whole Tether fiasco in the past, US should have been in it's coat tail already. So I would say yes, this is kinda late though, when the whole stable coin is still very hot issue. Nevertheless, we will see what the US regulators will have for us. They should at least look if these stable coins are running on fractional reserves.
legendary
Activity: 3934
Merit: 3190
Leave no FUD unchallenged
Anyone holding stablecoins at the moment needs to seriously consider their options.  Centralised entities are easy targets for regulators and law enforcement.  If they identify impropriety and decide to take action, some of these so-called currencies could easily be shut down.  You don't want to be holding them when that happens.
legendary
Activity: 3010
Merit: 1460
There has been some people telling this to everyone already. I am not certain if everyone was listening, however. But it was already beginning to become clear that the American government will regulate stablecoins and deputize them to become a gateway in and out of the cryptospace. This will be very much similar to what the American government did with online gambling where they deputized the credit card companies and some payment processors to be the gateway in and out of online gambling.
legendary
Activity: 1372
Merit: 2017
So did the USA government realize that stablecoins are already a big foe to their incoming digital-Dollar or they are planning to integrate stablecoins to their future digital dollar?

That's what I was wondering. The thing is that the CBDC digital dollar is still years away from being launched and I guess regulation will do until then but once it is in place, I don't see much point in a stablecoins pegged to the USD if you are going to have a shitcoin issued by the FED which is the USD. Better the original than the copy, I'd say.
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