Crypto News: A US House Committee on Financial Services is set to hold a hearing on “Understanding Stablecoins’ Role in Payments and the Need for Legislation” next week. The hearing could be centered around the potential of stablecoins to support beneficial payment options. However, the committee could also address risks to users and the broader financial system. The stablecoin market is key to the liquidity in crypto market as the pegging to the US Dollar provides easy access to fiat currency.
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The recent banking crisis in the United States highlighted the use of cryptocurrencies and especially stablecoins as concerns rose about safety of deposits in bank accounts. This led to investors looking for alternate ways to store value in challenging times. However, stablecoins too had their fair share of worries as these Dollar pegged coins face risk of losing the peg to the $1 value. Meanwhile, the Members of the Committee on Financial Services will hold a hearing about stablecoins on April 19, 2023.
Circle’s Executive To Testify
The hearing will feature, among others, Dante Disparte, Chief Strategy Officer and Head of Global Policy of Circle, the company behind USDC. A report on stablecoins by the President’s Working Group on Financial Markets (PWG) in November 2021 observed that these cryptocurrencies could improve efficiency in retail payments if a clear
regulatory framework is laid out. Hence, lawmakers are looking at this category for constructive usage, although a timeline is not set for regulatory clarity.
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