Massad Stresses the Importance of Stablecoins
In a recent interview with CNBC, the former chairman of the United States Commodity Futures Trading Commission (CFTC), Timothy Massad, stressed the significance of government attention towards the stablecoin ecosystem. He views stablecoins as a bridge between “the crypto world and the real world”, urging regulators to not dismiss their potential.
Stablecoin Risks: A Call for Proper Regulation
Massad voiced his concerns over the perceived negligence of the inherent risks associated with stablecoins by regulators. He argued that they are sidelined due to misconceptions about their efficacy. “I’m sympathetic to a lot of people in the government saying…we’re not convinced of the use case here, we don’t really see what the value is in the real world,” he said. “But sometimes it takes time to really discover that.”
Collaboration for Crypto Regulations
The ex-chairman, known for advocating cohesive crypto regulation, encourages collaboration between the CFTC and the Securities and Exchange Commission (SEC) for digital asset management. His stance was echoed by the United States Government Accountability Office (GAO), which recently released a report stressing interagency cooperation on crypto regulations.
Stablecoins’ Potential: Faster Payment Mechanisms and More
Massad also acknowledged the potential of stablecoins to facilitate faster payment mechanisms in the U.S., asserting that a U.S.-based stablecoin could encourage other nations to follow suit. “I think the competition from stablecoins could be useful, again, if we address the risks, and they are significant.”
In addition, he suggested that the rise of stablecoins is prompting banks to reevaluate their existing operating systems for potential improvements.
A Push for a U.S. Central Bank Digital Currency (CBDC)
Previously critical of the U.S.’s hesitance to create a Central Bank Digital Currency (CBDC), Massad views the advent of stablecoins as a motivator for CBDC creation.
His comments are timely, given the ongoing debate among U.S. regulators regarding crypto industry regulations, including legislation impacting stablecoin issuance and usage.