Senate banking committee to hold hearing on stablecoins
December 7, 2021, 7:51PM EST
1 min read
The U.S. Senate's Banking, Housing and Urban Affairs Committee will hold a hearing next week focused on the use of stablecoins.
"Stablecoins: How do they work, how are they used, and what are their risks?" will take place on Tuesday, Dec. 14 at 10:00 a.m. EST. The session will convene in Dirksen Senate Office Building 538 and will also be streamed on the senate's website.
Alexis Goldstein, Director of Financial Policy at the Open Markets Institute and Professor Hilary J. Allen, American University Washington College of Law are confirmed as witnesses, but additional witnesses may be added ahead of the hearing. Written remarks have not yet appeared.
Scrutiny on stablecoin operators has been heating up in recent months with the release of the President's Working Group report on stablecoins last month. That report called on legislators to restrict stablecoin issuance to banks.
Additionally, Sen. Sherrod Brown (D-OH) sent letters on Nov. 23 asking stablecoin operators to open up about their processes for minting and redemption and detail any special arrangements they have with specific trading platforms. As chair of the Senate Banking Committee, Brown will likely lead questioning in the upcoming session.
Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
In this episode of The Scoop, StarkWare Co-Founders Uri Kolodny and Eli Ben-Sasson walk through StarkWare's recent fundraise and discuss how their firm is bringing affordable blockchain transactions to the masses.