Following the passage of the country’s first stablecoin bill (GENIUS Act) last year, the proposed crypto market structure bill, the CLARITY Act, has faced significant delays in the US Congress, particularly due to growing opposition from the traditional banking sector.
In this climate, Coinbase’s Chief Policy Officer, Faryar Shirzod, made five important recommendations that Congress should avoid when it comes to stable coin regulation.
Coinbase CPO Urges Congress Not To Help Banks
First, Shirzad warned against violating the bipartisan goals set out in the country’s stablecoin legislation signed by President Donald Trump last year.
He argued that the GENIUS Act was aimed at strengthening the U.S. dollar, increasing demand for U.S. Treasuries, and encouraging digital asset innovation within the United States, rather than allowing that innovation to flow to other countries, such as China.
Coinbase’s CPO said any changes to the rewards framework should reinforce those goals, not detract from them.
Shirzod also stressed the importance of consumer interests and warned against legislative measures that could extort money from consumers based on unverified claims. risk of deposit flight.
He noted that stablecoins are designed to make transactions faster and more accessible, and banks themselves are among the early adopters.
Shirzod argued that revising established laws in favor of banks and potentially disrupting non-banking platforms would represent bad public policy, especially if rooted in untrustworthy premises.
Possible Claims for Stablecoins
The Coinbase official also emphasized the need for clear regulatory authorities, recommending that Congress not introduce vague enforcement powers that could be abused in the future.
Ambiguous rules could allow future administrations to subvert the original intent of Congress, which could inadvertently result in the prohibition of legitimate activities in space. Therefore, Sherzod called on the legislators to define precisely legal guidelines which provide a strict boundary for any rules.
Another important point made by Sherzod is related to the need for legislation that does not interfere with existing legal businesses. He claimed that the stablecoin ecosystem currently includes partnerships between issuers, platforms and technology providers.
Coinbase’s CPO further argued that any new legislation should set guidelines for the future, rather than targeting legitimate business deals or specific companies.
In the end, Shirzad called on the Congress to listen to the voters. While bank executives wield significant political influence in Washington, he argued, “tens of millions of Americans” invest in them. cryptocurrenciesand their opinions should have equal weight. Coinbase CEO concluded:
Stablecoins strengthen the dollar, increase demand for US Treasuries and modernize payments. They will also be a huge business opportunity for banks of all sizes. Congress should focus on clear regulations that foster innovation in America, not policies that push it offshore.
Featured image from OpenArt, chart from TradingView.com
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