Brad Garlinghouse, CEO of Ripple Labs, predicts that regulatory clarity will come to stablecoins in 2024.
In a new interview with CNBC International, Garlinghouse said that the US government will set clear guidelines for the stablecoin industry this year because he believes crypto assets pegged to the dollar have an important benefit.
I think there will be legislation passed this year. I won't be predictive about which one I think, but the possibility is that [Clarity for Payment Stablecoins Act] – I can't remember the name of the bill that was going through the system in Washington, D.C. – but I think we'll see it partly because the US Treasury wants it.
I think the stablecoin market has really surprised people in some ways in terms of solving a real need, and I think it makes sense to have regulatory clarity around what I think is good for the entire industry.
Garlinghouse goes on to say that stablecoins like USDT and USDC are here to stay, and if they have any skeletons in their closet, they will become known once clear guidelines are established for the emerging crypto sector.
“One of the things I said earlier is, are there skeletons in the vault? The stablecoin market, because there are no clear rules of the road, will be interesting when it comes to fruition.
Primary school [stablecoins] – Obviously USDT and USDC – I think they're here to stay and I think you'll see other entrants into this market as well.
The Stablecoin Payment Clarity Act was proposed last year, and would require stablecoin issuers to hold all reserves tied to USD-pegged digital assets, government securities, or repurchase agreements fully collateralized.
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