Timothy Massad urges authorities to pay more attention to regulating stablecoins and stop pretending that it is only a temporary trend.
According to Timothy Massad, the former United States Commodity Futures Trading Commission (CFTC) chair, stablecoins are instrumental in bridging the gap between the conventional financial world and the emerging cryptocurrency sector.
On top of that, in an interview with CNBC on July 24th, Massad urged lawmakers to pay attention to regulating the stablecoin market. Moreover, the former CFTC chairman emphasized that stablecoins should not be overlooked as a momentary trend by governments.
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Massad voiced his concern about regulatory authorities neglecting the inherent risks of stablecoins under the false premise that these financial instruments are not functional.
In a conversation with CNBC, Massad stated:
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. <...> but sometimes it takes time to really discover that.
Massad also commented on the stablecoin potential to expedite payment mechanisms in the US. He also suggested that the development of a US-native stablecoin could inspire other nations to follow suit, stating:
I think the competition from stablecoins could be useful, again, if we address the risks, and they are significant.
Apart from quickening payment systems, Massad contends that stablecoins are forcing banks to rethink and possibly enhance their current operational methodologies.
As a long proponent of crypto regulation, Massad has continually advocated for enhanced collaboration between the CFTC and the US Securities and Exchange Commission (SEC) in matters concerning digital assets.
Following Massad's interview with CNBC, the US Government Accountability Office (GAO) published a report linked to the blockchain's role in finance, emphasizing the need for inter-agency cooperation in cryptocurrency regulations.
As the US contemplates crypto regulations, Massad's comments offer a crucial perspective amid multiple proposed bills targeting stablecoin issuance and use.
