What’s happening: The U.S. Senate Committee on Banking, Housing and Urban Affairs hosted a hearing today focusing on “Examining the President’s Working Group on Financial Markets Report on Stablecoins.” Paige Pidano Paridon, BPI senior vice president and associate general counsel, issued the following statement in response:
Stablecoins have quickly moved beyond the ideation phase and are being increasingly marketed to consumers, driven primarily by unsupervised institutions conducting business largely outside of the federally regulated financial system. The rapid growth of stablecoins, including the unstable stablecoins that falsely claim to be backed by 100% reserves, could lead to inflated systemic risk and potential harms to consumers. Congress has acknowledged these risks through numerous hearings and should act promptly, in coordination with financial regulators, to establish clear rules that will help to promote competition and responsible innovation in a way that protects consumers.
For more on stablecoins, please click here or click on the links below:
- BPI Statement on Stablecoins Before the House Financial Services Committee
- Statement for the Record Regarding Stablecoins Before the House Financial Services Committee
- BPI Encouraged by Senate Banking Committee’s Examination of Stablecoin Risks
- Op-Ed: Stablecoins Are Backed by ‘Reserves’? Give Us a Break.
- BPI Supports House Committee Efforts to Scrutinize Digital Assets and Sustain Safe Financial System
- BPI Issues Statement in Response to Stablecoin Report by President’s Working Group and Financial Regulators
- Facebook’s Novi Pilot: What We Know
- Making Stablecoins Stable: Is the Cure Worse than the Disease?
About Bank Policy Institute.
The Bank Policy Institute (BPI) is a nonpartisan public policy, research and advocacy group, representing the nation’s leading banks and their customers. Our members include universal banks, regional banks and the major foreign banks doing business in the United States. Collectively, they employ almost 2 million Americans, make nearly half of the nation’s small business loans, and are an engine for financial innovation and economic growth.