• Bitwise Chief Compliance Officer Katherine Dowling predicts that stablecoin legislation will arrive in 2021, in the new Congress.
• The collapse of the FTX exchange provides a real-world example of what can happen without regulation in the crypto space.
• With companies onshore and subject to clear regulation, the industry can benefit from the new legislation.
With the new United States Congress convening on January 3, 2021, many expect changes in US politics and the regulation of cryptocurrencies to follow. Bitwise Asset Management’s General Counsel and Chief Compliance Officer, Katherine Dowling, suggests that the US Congress will move to regulate stablecoins in 2021.
This would be the first step towards the crypto industry regulation and it would come after a year of many different bills being proposed and politicians looking for definitions and regulations of the crypto space. Dowling believes the momentum built up by the end of 2020 provides a good foundation for the new legislation.
The collapse of the FTX exchange provides a real-world example of what can happen without regulation in the crypto space. This has provided a much-needed wake-up call for the industry, and Dowling believes that having companies onshore and subject to clear regulations will make all the difference.
The proposed stablecoin legislation is expected to bring many benefits to the crypto industry. Regulations will provide a sense of security for investors and ensure that the industry is operating in an ethical and responsible manner. It will also provide clarity on the rules and regulations, which will give investors the confidence to invest in the crypto markets.
Furthermore, the legislation will help to create a level playing field, making it easier for companies to operate within the law. This could potentially lead to greater investment in the industry, and in turn, create more jobs.
As the crypto industry continues to grow, the need for regulations is becoming increasingly clear. The proposed stablecoin legislation will provide a much-needed boost to the industry and create a more secure and reliable environment for investors.