Consensys Director talks about US regulation of stablecoins

Amid ongoing campaigns for the 2024 elections, many US lawmakers have yet to seal the deal on legislation aimed at bringing regulatory clarity on aspects of the digital asset space, including stablecoins.

Speaking to Cointelegraph at the North American Blockchain Summit on November 16, Bill Hughes, ConsenSys’ senior advisor and head of global regulatory affairs, said this was “an exciting time in politics” as members of Congress considered cryptocurrency bills they planned to support. Hughes said stablecoin legislation should be a “no-brainer” for lawmakers once issues with state-level regulators are resolved.

“Stablecoins are a big part of the cryptocurrency ecosystem and are one of the best use cases for blockchain technology,” said the Consensys director. “There’s only one political hurdle holding things back.”

Hughes added that a cryptocurrency bill introduced by Massachusetts Senator Elizabeth Warren, which aims to combat the illicit use of digital assets, may gain support but “poses a problem” in tackling money laundering. In contrast, the Stablecoin Payment Clarity Act, introduced by House Financial Services Committee Chairman Patrick McHenry, was “pretty reasonable, all things considered,” according to a Consensys director.

“Cryptocurrencies have definitely become a political ball in D.C.,” Hughes said. “Clearly there are those who are openly and cheerfully hostile. There are many who see it as an exciting space that should be given room to breathe, recognizing that there are significant risks that it could be a legitimate subject of federal policy.”

This legislation you are proposing does nothing to solve the problem it claims to solve. Literally nothing.

However, today’s Justice Department settlement helps. https://t.co/IkcFIAygLO

— Bill Hughes: wchughes.eth (@BillHughesDC) November 22, 2023

Like many in the industry, Hughes was hoping the SEC would give the green light to create a bitcoin exchange-traded fund (ETF) (Bitcoin), but he did not rule out that the regulatory body would continue to delay making the decision:

“I wouldn’t be surprised if a Bitcoin ETF is finally allowed to launch […] There is a huge demand for suppliers for this purpose. […] The current reason for not having one was inconsistent.”

Candidates for the 2024 presidential election, including Republican Vivek Ramaswamy and independent Robert F. Kennedy Jr., attended the North American Blockchain Summit and expressed their support for several policies related to cryptocurrencies, an issue that has been largely ignored and has featured prominently in GOP debates. . . According to Hughes, cryptocurrencies have been “too far off the beaten path” on political issues, and will likely be represented in candidates’ views on broader issues such as financial freedom and the size of government.

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