US Senate Banking Committee asks stablecoin projects for information

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2021-11-25 06:53:14

The chairman of the US Senate Banking Committee has sent a letter to the major stablecoin companies and asked them to make their operating procedures public.

US Senate Banking Committee asks stablecoin projects for information

On November 23, Senator Sherrod Brown, Chairman of the US Senate Banking Committee, said that he has sent letters to major stablecoin issuers in the cryptocurrency market asking them to provide information. .

Mr. Brown’s letter was sent to Tether (USDT issuer), Coinbase – Circle – Center (the trio of companies behind USDC), Gemini (GUSD), Paxos (USDP), TrustToken (TUSD) and Binance.US (BUSD).

In the letter, Senator Brown requires the above companies to clearly describe the process and metrics related to the issuance, operation and backing of their stablecoin products with US dollars (USD). , as well as issuer agreements with cryptocurrency exchanges. He also set a December 3 deadline for a reply.

The head of the Senate Banking Committee has expressed concerns that consumers will not understand the complex mechanics and risks that come with stablecoins. He wrote:

“I have concerns about specific terminology associated with the stablecoin sector, such as how these terms differ from traditional finance and whether they are identical across crypto platforms. are not.”

Circle was the first to respond to a request from a senior US government official. Circle CEO Jeremy Allaire wrote on Twitter:

“Thanks to Senator Brown for his letter on the critically important issue of how stablecoin issuers are going to protect users. I will respond promptly to inquiries and work together to ensure consumers are protected at all times.”

Mr. Brown’s letter referred to the stablecoin report by President Biden’s Financial Adviser Group, published in early November. As reported by CHK, the report continues to reflect the previous position of the President. US officials, it is said that the stablecoin sector needs to be regulated soon to limit risks to users and financial stability.

Earlier, it was reported that the White House was urging Congress to develop legislation to regulate stablecoin issuers as banks.

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