Lawmakers and industry experts discussed the importance of US dollar-backed stablecoins in the financial system and the urgency of a regulatory framework for these assets during a hearing convened by the US House Committee on Financial Services on March 11.
Titled “Navigating the Digital Payments Ecosystem: Examining a Federal Framework for Payment Stablecoins and Consequences of a U.S. Central Bank Digital Currency,” the hearing also discussed concerns surrounding a potential central bank digital currency (CBDC) in the US.
The hearing addressed potential benefits stemming from stablecoins and criticized harmful traits of CBDCs. House Financial Services Committee chairman French Hill argued that stablecoins offer advantages over a CBDC by fostering competition and innovation.
According to Hill:
“Unlike stablecoins, which operate in a competitive market, a CBDC would concentrate financial power within the federal government, restrict consumer choice, and undermine the innovation that has made US financial markets the strongest in the world.”.
Hill further emphasized that when properly regulated, stablecoins can enhance US dollar dominance and modernize payment systems without excessive government control.
Representative Bill Huizenga echoed the potential of stablecoins, stating they could simplify the US payment system. Additionally, Congressman Andy Barr added that stablecoins help maintain the US dollar’s status against competitors, including foreign CBDCs like the digital yuan.
Charles Cascarilla, CEO of Paxos, dismissed the notion that a CBDC would provide benefits beyond those offered by stablecoins. He said:
“Historically, innovation in the US, both in the technology and the financial system, has come from the private sector, and that is what we should continue to embrace.”
Congressman Tom Emmer supported prohibiting CBDCs in the US, saying he is “grateful to President Donald Trump for understanding this” and signing an executive order banning them.
Emmer references the order Trump signed on Jan. 23, establishing a framework to drive stablecoins’ growth while prohibiting federal agencies from pursuing CBDC plans.
The hearing reinforced growing consensus that stablecoins require a clear legal framework to ensure stability and adoption while preventing government overreach.
Representative William Timmons emphasized that regulatory clarity is a priority, noting that digital assets remain vulnerable to enforcement actions that could drive innovation overseas without clear legislation.
The STABLE Act, which aims to regulate digital payment instruments like stablecoins, was central to the discussion. The bill proposes allowing banks and nonbanks to issue stablecoins, with oversight varying based on the amount issued.
It also mandates that US dollars or approved assets fully back stablecoins, ensures public redemption policies, and subjects issuers to banking-like supervision.
Caroline Butler, global head of digital assets at BNY Mellon, emphasized the importance of the asset segregation framework laid in the STABLE Act, stating that client assets should never be commingled with firm assets.
Cascarilla reinforced this stance, arguing that legal protections for reserve holding are critical to maintaining a stablecoin’s value.
Randall Guynn, Chairman of Davis Polk & Wardwell’s Financial Institutions Group, also highlighted that requirements from the STABLE Act that guarantee a secure backing for stablecoins could make these assets a “no questions asked” type of money.
Carole House, a senior fellow at the Atlantic Council’s GeoEconomics Center, acknowledged the STABLE Act’s cybersecurity provisions and highlighted their importance in securing digital financial infrastructure.
Beyond regulatory considerations, the hearing also pointed out stablecoins’ role in financial inclusion.
Cascarilla noted that stablecoins provide a means for unbanked individuals to access digital dollars through smartphone wallets, enabling financial participation for billions worldwide who lack traditional banking access.
Banks also see a role for themselves in the stablecoin ecosystem. Butler stated that financial institutions could provide trust and confidence, ensuring stablecoin payment mechanisms evolve alongside traditional payment rails.
The post Congress weighs stablecoin framework and rejects CBDC overreach appeared first on CryptoSlate.
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robertalfred175
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14.10.25 08:46
robertalfred175
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15.10.25 18:07
crypto
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15.10.25 21:52
harristhomas7376
"In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1
15.10.25 21:52
harristhomas7376
"In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1