The Choice: Regulated Stablecoins vs Offshore Assets

The Choice: Regulated Stablecoins vs. Offshore Assets

According to Austin Campbell, the choice is not between stablecoins and no stablecoins, but rather between regulated products and offshore assets. Campbell highlights the need for regulated stablecoins with low fees to protect consumers and provide financial transparency and oversight. The Clarity for Payments Stablecoins Act of 2023 recently passed out of committee with bipartisan support and is set to expand the reach of the dollar and financial access in the United States.

Key Points:

Stablecoins have lacked federal regulatory clarity in the United States despite being created almost a decade ago.
Stablecoins are old financial products using new technology.
The lack of clarity in the United States has led to international growth in the stablecoin space, with over $100 billion in assets.
Non-U.S. jurisdictions, such as Singapore and Bermuda, are taking advantage of stablecoin innovation.
The decision the United States faces is not stablecoins vs. no stablecoins, but rather onshore stablecoins vs. offshore stablecoins.

Hot Take:

The United States must act to regulate stablecoins and seize the opportunity to be a leader in the industry. By implementing a regulatory framework like the Clarity for Payments Stablecoins Act, the U.S. can ensure transparency, stability, and financial security. Failure to act risks losing the dollar’s dominance in crypto and blockchain, as well as weakening the U.S. economy. The only losers in advancing the stablecoin bill are entrenched incumbents charging high fees, while the U.S. can embrace innovation and drive better financial technology worldwide.