Happy Thursday, Blockfolians
Yesterday afternoon, a group of Congressional Democrats released the STABLE Act, an 18-page bill that would force stablecoin issuers to be, for all intents and purposes, banks. They would have to get banking licenses, be approved by the Federal Reserve and hold FDIC insurance.
The stated goal is to avoid predatory behavior and protect low income communities in times of COVID-19. Many in the crypto industry pointed out that hyper regulatory burden tends to have the opposite effect, crowding out all but the largest players who can afford massive compliance costs. It is exactly those companies that have the least incentive to actually serve low income customers.
Congresswoman Rashida Tlaib @RepRashidaPreventing cryptocurrency providers from repeating the crimes against low- and moderate-income residents of color traditional big banks have is critically important. That's why I'm proud to introduce the #STABLEAct with @RepChuyGarcia and @RepStephenLynch. https://t.co/yorQPo6wz4
It also brought up question of whether decentralized stablecoins would fair better under this potential regime, the answer to which seemed to be “no” according to one of the bill’s advisors.
While this bill might not get much traction, it is a signal for what the crypto industry will face in the years ahead.
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Seriously, this is an important conversation.
Rohan Grey @rohangrey@galgitron @powers_chris @RashidaTlaib @ChuyForCongress @RepLynch There's a simple solution to this: don't validate blocks that contain deposit contracts.
This is already starting - at least on the regulatory level.
A Really Big Number We Should Be Paying Attention To
That’s the amount of value bitcoin moves around every second.