• Bitwise Asset Management’s Chief Compliance Officer Katherine Dowling believes that the US Congress will move to regulate stablecoins this year.
• The current US Congress, which convened on January 3rd, 2023, is expected to bring a shift in US politics which will reflect on the crypto industry and its different sectors.
• The FTX issue has provided a real-world example of what can happen when there is no regulation, and having companies onshore and subject to clear regulation would make all the difference according to Dowling.
The crypto industry has seen a surge in popularity in recent years, with more and more people turning to digital currencies as a viable form of investing. As the industry grows, so do the need for regulations that protect investors and ensure that these digital assets remain secure and stable. In the US, the latest Congress, which convened on January 3rd, 2023, is expected to bring a shift in US politics which will reflect on the crypto industry and its different sectors.
Katherine Dowling, General Counsel and Chief Compliance Officer at the crypto index fund provider Bitwise Asset Management, is one of many who believes that US Congress will move to regulate stablecoins this year. Dowling believes that the momentum was already building towards the end of last year, with many different bills being proposed and politicians looking for definitions and regulations of the crypto space.
However, the infamous collapse of the FTX exchange has provided a real-world example of what can happen when there is no regulation. Dowling argues that having companies onshore and subject to clear regulation would make all the difference.
The US Congress has yet to take any action on the regulation of stablecoins, but the industry is hopeful that it will move soon. If the US does decide to regulate the stablecoin industry, it could prove to be beneficial for the crypto industry as a whole. Stablecoins provide investors with a way to invest in digital assets without having to worry about volatility, and their regulation could help to ensure that these assets remain secure and stable.
At the same time, the regulation of stablecoins could also open up new opportunities for the industry. For example, the regulation could help to increase the level of trust in the crypto industry and help to attract more investors. It could also help to create a level playing field for all participants in the crypto market, which would make it easier for companies to conduct business and increase the overall efficiency of the industry.
Ultimately, the regulation of stablecoins could be beneficial for the crypto industry, but only time will tell if the US Congress will take action on this issue. In the meantime, Dowling and others in the industry are hopeful that the new Congress will take the necessary steps to ensure the stability of the industry.