US needs to regulate stablecoins to keep a strong dollar: Stellar CEO
United States financial regulators are tightening their grip on the crypto industry and the U.S. dollar has also been under pressure with countries distancing themselves from dollar hegemony, but the chief of Stellar says stablecoin regulation may solve that.
In an April 11 Bloomberg interview, Denelle Dixon, the CEO and Executive Director of the Stellar Development Foundation spoke about the prospects of regulating dollar-pegged digital assets in the U.S.
Dixon said she was very optimistic that there would be some form of stablecoin regulation in the U.S. by the end of the year because “they want to set the standard.”
President Joe Biden’s administration has already highlighted the need for a stablecoin regulatory framework, but Dixon said that needs to be pushed through Congress.
“If we don’t do something in the U.S., we’re going to be in this bifurcated world where we have legislation outside the U.S. that’s friendlier to crypto," Dixon said, adding:
Dixon was optimistic about stablecoin regulation “only because we don’t have a choice” saying the focus should be more on the utility and value to users than on the tech stack.
“Stop talking about the technology and start demonstrating the utility,” she added.
"Stop talking about the technology and start demonstrating the utility." - @DenelleDixon on @BloombergLive
Stellar is a decentralized cross-border payments network powered by the Lumens (XLM) token. It was created as a modified fork from Ripple’s codebase in 2014.
Related: Stablecoins are solution to crypto’s banking problem, exec says
Stablecoins currently represent around 10.5% of the entire crypto market capitalization with $133 billion in circulation. Dixon hinted that it was paramount that stablecoins are
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