Crypto mining Senate Banking Committee chair seeks information from stablecoin issuers and exchanges, suggesting possible hearing

Crypto mining Senate Banking Committee chair seeks information from stablecoin issuers and exchanges, suggesting possible hearing thumbnail

Crypto mining

The senator mentioned he had “important issues with the non-standardized phrases relevant to redemption of specific stablecoins” in separate letters to eight crypto corporations.

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Crypto mining Senate Banking Committee chair seeks information from stablecoin issuers and exchanges, suggesting possible hearing

Sherrod Brown, the chair of the Senate Committee on Banking, Housing and City Affairs, has known as on a number of crypto corporations to launch data associated to client and investor safety on stablecoins.

In line with a Tuesday announcement, Brown despatched notices to Coinbase, Gemini, Paxos, TrustToken, Binance.US, Circle, Centre, and Tether requesting data on stablecoins by Dec. 3, suggesting that he and different lawmakers could also be making ready to carry a later listening to on the topic. The senator mentioned buyers “might not admire the complexity and distinct options and phrases of every stablecoin,” with crypto platforms not at all times offering customers with the identical protections afforded to somebody buying cash immediately from an issuer.

“I’ve important issues with the non-standardized phrases relevant to redemption of specific stablecoins, how these phrases differ from conventional belongings and the way these phrases will not be constant throughout digital asset buying and selling platforms,” mentioned Brown within the eight respective letters.

The discover requests primary data on buying, exchanging and minting stablecoins, in addition to the variety of tokens in circulation and the way typically customers alternate them for U.S. {dollars}. Brown’s notices to Coinbase, Centre, and Circle requested data on USD Coin (USDC), Gemini on GUSD, Paxos on Pax Greenback (USDP), TrustToken on TrueUSD (TUSD), and Tether on USDT. He added that the businesses ought to outline the market circumstances that will make it troublesome, if not unattainable, to redeem stablecoins for fiat.



Thanks @SenSherrodBrown for the letter inquiring concerning the essential matter of how stablecoin issuers shield customers. I stay up for responding and dealing with you to make sure customers are appropriately protected. https://t.co/RWWmI0erOA

— Jeremy Allaire (@jerallaire) November 24, 2021

Brown’s request from the crypto corporations follows a report from the President’s Working Group on Monetary Markets suggesting that stablecoin issuers in america ought to be topic to “acceptable federal oversight” akin to that of banks. The group posited that laws was “urgently wanted” to handle dangers posed by stablecoins.

Associated: The stablecoin scourge: Regulatory hesitancy might hinder adoption

U.S. regulators have beforehand cracked down on stablecoin issuers Tether and Bitfinex for allegedly not at all times backing their USDT with reserves. The corporations have been required to pay $18.5 million in damages to the state of New York and undergo periodically reporting their reserves. Following the settlement, Tether reported a lot of its reserves consisted of business paper.

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