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Crypto Companies CEOs To Testify Before Congress Today

A prime area of discussion could be Stablecoin regulation.

On Wednesday, 6 crypto companies are going to testify before the House Committee on Financial Services.

The company chiefs of Coinbase, Circle, FTX, Paxos, Bitfury and Stellar have been summoned.

The hearing is titled “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States”

Its agenda is to deliberate on Cryptocurrency Exchanges, Stablecoins, regulatory concerns, and regulatory responses.

A major topic of discussion could be Stablecoin regulation and CBDC. Earlier this year the Chair of Federal Reserve, Jerome Powell had compared Stablecoins to Money Market funds and Bank Deposits and should be regulated in a similar way.

Stablecoins have remained under scanner in the US for long, especially Tether. An investigation by the New York State Office of the Attorney revealed that Tether is not fully backed by USD reserves.

Other than Stablecoins, crypto-related crimes will also be a hot topic for discussion. A report by the Financial Crimes Enforcement Network (FinCEN) has pointed out that around $590 million in suspected ransomware payments were reported by financial institutions in the first six months of 2021, as compared to $416 million in 2020.

This hearing is a positive development as regulators are increasingly interacting with crypto industry players. It will pave the way for future regulations as Congress could also clear out its stance towards the industry.

The proceedings can be watched live at the official website of the committee at 10 AM ET.

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