‘Stablecoins Are Killing It’ Ep. #24— Thursday, Dec. 10, 1–2pm EST; Implications Of The STABLE Act
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On Dec. 2, U.S. Rep. Rashida Tlaib introduced the Stablecoin, Tethering and Bank Licensing Enforcement (STABLE) Act, to
… protect consumers from the risks posed by emerging digital payment instruments, such as Facebook’s Libra and other Stablecoins currently offered in the market, by regulating their issuance and related commercial activities. Digital currencies, whose value is permanently pegged to or stabilized against a conventional currency like the dollar, pose new regulatory challenges while also represent a growing source of the market, liquidity, and credit risk.
The proposed legislation claims that Facebook, JPMorgan Chase & Co., Apple Inc. and other corporations are considering issuing their own stablecoins, and the future of digital payments is at risk of being controlled by Wall Street and Silicon Valley.
The bill would require stablecoin issuers to obtain a banking charter; as well as approval from the Federal Reserve, the Federal Deposit Insurance Corp., and the appropriate banking agency six months prior to its issuance.
While the legislation is designed to protect consumers from the risks posed by emerging digital payment instruments, many crypto industry thought leaders believe that the bill would thwart innovation and give even greater power to incumbent financial institutions.
In a post tiled “The Unintended(?) Consequences of the STABLE Act,” Coin Center’s research director Peter Van Valkenburgh wrote:
Centralized stablecoins aside, the bill is a disaster with regard to decentralized applications like Maker Dao, as well as a disaster for the larger innovation-enabling platforms, like Ethereum, on which those applications run.
We have two experts on the call who will discuss the driving forces behind the STABLE Act, what they hope to achieve, and what the bill will actually accomplish if passed.
We’ll also discuss the odds of it receiving approval, the true systemic risks of stablecoins, and what the alternatives are for regulating stablecoins in the United States.
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Our featured speakers for Episode #24:
Reuben Bramanathan, crypto industry consultant —After spending more than seven years practicing law, Bramanathan joined Coinbase, in 2015, as product counsel, before becoming product lead of Coinbase Asset Management. Reuben left Coinbase in 2019, and he has since been advising a variety of crypto projects, largely in the DeFi space.
Dave Hendricks, CEO of Vertalo — an SEC-registered digital transfer agent that provides cap table and share registry services for digital and tokenized assets. Prior to founding Vertalo in early 2017, Dave cofounded LiveIntent, a NY-based identity management platform. Dave started his career at accounting firm Arthur Andersen, then worked on real estate securitization at a Goldman Sachs joint venture, and led the global partnership between Oracle Corporation and Arthur Andersen.
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This content is for educational purposes only. It does not constitute trading advice. Past performance does not indicate future results. Do not invest more than you can afford to lose. The author of this article may hold assets mentioned in the piece.
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