Top-tier Blockchain Lobby Group Calls For “Tech-neutral Approach” For Stablecoins

By Robin Wong | October 21, 2021

A top-tier blockchain lobby group is actively calling for the US regulators to reportedly employ a “technology-neutral” approach, regarding stablecoin regulations. 

Specifically, in an effort to argue that dollar-pegged cryptocurrencies creating no risks to the existing financial network, the Chamber of Digital Commerce has reportedly presented a 17-page letter with a six-point plan for future regulatory action associated with stablecoins to the President’s Working Group on Financial Markets, made up of lawmakers from the Department of Treasury and Federal Reserve. 

The group reportedly believed that stablecoin regulations should come with a technology-neutral nature, regulated in a sense that is proportionate to risk, guaranteeing the competitive edge of the US, blockchain-wise, is not compromised. 

Moreover, the laws should legally classify stablecoins as digital payment systems rather than investments, making sure the compliance level with current Anti-Money Laundering guidelines are met, and be underpinned by a flexible, principles-based regime.

When discussing the points about technology neutrality, the Chamber reportedly claimed that there is no need for stablecoins to fall under the scope of a new regulatory regime, only due to the fact that new technology is being rolled out.

“New regulatory treatment for stablecoins should only be invoked to the extent necessary to mitigate unique risks that are not currently addressed by the regulatory regime or to account for stablecoins’ ability to reduce risk or provide new benefits.”

Formed in 2014, the Chamber of Digital Commerce has reportedly touched numerous fields, nominally blockchain, traditional finance and information technology. 

Its executive committee is reportedly made up of Binance.US, Bitpay, BlockFi, Citigroup, BNY Mellon, Circle, BNP Paribas, Fidelity Investments, Goldman Sachs, IBM, Mastercard, Visa and Microsoft, among others.

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