Ripple CEO Anticipates Regulatory Clarity for Stablecoins in 2024
Brad Garlinghouse, the CEO of Ripple Labs, has expressed his belief that regulatory clarity for stablecoins will be established by 2024. In an interview with CNBC International, Garlinghouse highlighted the importance of clear guidelines for the stablecoin industry, stating that dollar-pegged crypto assets serve a significant purpose.
Garlinghouse further stated that he expects the US government to pass legislation this year, potentially referring to the Clarity for Payment Stablecoins Act. He emphasized the need for regulatory clarity and noted that stablecoins like USDT and USDC are likely to remain in the market, with new entrants expected to emerge.
The Clarity for Payment Stablecoins Act
The proposed Clarity for Payment Stablecoins Act would require stablecoin issuers to hold reserves associated with dollar-pegged digital assets in US dollars, government securities, or fully collateralized repurchase agreements.
Hot Take
According to Brad Garlinghouse, regulatory clarity for stablecoins is on the horizon. As the CEO of Ripple Labs, Garlinghouse believes that the US government will establish clear guidelines for the stablecoin industry in 2024. This move is expected to benefit the entire crypto sector and address any concerns or hidden issues related to stablecoins. Garlinghouse also predicts that popular stablecoins like USDT and USDC will continue to thrive in the market while welcoming new players into the space.
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