Regulatory Clarity, More Transactional Use Could Boost Stablecoin Adoption - Crypto Summit Panel

cryptonews.com:

The USD 80bn-heavy stablecoin industry requires more regulatory clarity and harmonization across jurisdictions, but the coins' increased use for transactions is the ultimate factor that will boost adoption across the world, according to the participants of a discussion held at the Crypto and Digital Assets Summit hosted by The Financial Times.

Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle, the issuer of the major stablecoin USD coin (USDC), said that stablecoins have the potential to “solve the original sin of cryptocurrencies in the first place which is hypervolatility.”

A major stablecoin “could challenge the very sovereignty of the dollar,” he argued. “The reason why regulators […] care about it is that, perhaps, more than any other cryptocurrency, stablecoins have the highest chance of entering retail and widespread adoption.”

“Many stablecoin issuers ignore the existence of electronic money circulation regulations,” according to Disparte who said that one of the common misconceptions was that cryptoassets and stablecoins operate within a “Wild West” that lacks any applicable regulation.

Scott Bauguess, Vice President for Global Regulatory Policy at major crypto exchange Coinbase, which also co-manages USDC, said that while stablecoins are “in their infancy right now,” they could contribute to breaking down the traditional financial landscape, and offer “endless” use cases.

“I think the United States is winning the digital currency race,” as it remained a hub for major industry players, according to Bauguess.

He said that he hoped “that more legislation will be proposed in more jurisdictions,” but a further five-six years are to be expected before more regulatory clarity could be brought to