Stable coins have to be covered with cash, says Pro Crypto Senator Cynthia Lummis
Stable coins have to be covered with cash, says Pro Crypto Senator Cynthia Lummis
Cynthia Lummis-Republican Senator and Passionate Crypto supporter-shows caution in stable coins. She recently said that they have to be secured with cash and regularly checked.
Ensuring the right stable coin reserves
lummis admitted that stable coins enable faster payments between humans and companies than hard dollars. She says that they promote financial inclusion and new market opportunities. However, she also said that they represent "new risks" for the economy, especially their need for trustworthy support.
Stable coins must be 100 % covered by cash and bar medium -equivalent, and this should be checked regularly. I am concerned that some stable coins are not always fully covered by suitable assets.
lummis also said that stable coins "have to comply with the laws to combat money laundering and sanctions". As a solution, she suggested that the cryptocurrencies may have to be issued exclusively by "deposit institutes, money market funds or similar vehicles".
Cynthia lummis. Bloomberg
stablecoins are a primary concern of the regulatory authorities
StableCoins have taken the top in the United States as the most important regulatory concern. Senator Warren Davidson - another advocate of cryptocurrency innovations - has admitted that stablecoins could meet the definition of security.
stablecoins do not promise the owners, but they provide the maintenance of a certain value. This requires a thorough examination of the company's reserves, as suggests Lummis.
The regulatory authorities, the currently leading stable coin on the market, have shown on the market with great skepticism. The company has repeated to confirm. However, these “audits” often lack information that is specific enough to arouse confidence in the supervisory authorities and the crypto community, and they have also failed to create an independent report from third parties.
Gary Gensler-Chairman of the Securities and Exchange Commission-continues to work for the stable coin regulation. In an interview last week he for you "Poker chips on the casino play tables".
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