Former CFTC Chairman Believes Stablecoins Can Serve as a Bridge Between Two Worlds

Timothy Massad, the former chairman of the United States Commodity Futures Trading Commission (CFTC), recently emphasized the importance of government attention towards the stablecoin ecosystem during an interview with CNBC.

In the interview on July 24, Massad described stablecoins as a vital bridge connecting the “crypto world and the real world.” He cautioned against dismissing stablecoins as a passing trend, urging regulators not to overlook their significance.

Massad expressed concern that regulators might not be adequately addressing the risks associated with stablecoins, leading to a lack of serious consideration. However, he emphasized that it might take time to fully comprehend their potential value.

As an advocate for crypto regulation, Massad has also emphasized the need for better cooperation between the CFTC and the U.S. Securities and Exchange Commission (SEC) regarding digital assets.

The recent report by the United States Government Accountability Office (GAO) echoed the call for interagency collaboration on crypto regulations, further supporting Massad’s viewpoint.

Highlighting the potential benefits of stablecoins, Massad suggested that they could facilitate faster payment mechanisms in the U.S. If the country were to develop its stablecoin, it could inspire other nations to follow suit.

However, he emphasized the need to address significant risks associated with stablecoins to leverage their competition effectively. Moreover, he pointed out that stablecoins are already prompting banks to reevaluate their current operating systems and explore avenues for improvement.

Massad has previously criticized the U.S. for its slow progress in creating a central bank digital currency (CBDC).

These comments from the former CFTC chairman come at a time when U.S. regulators are actively considering various crypto industry regulations, including bills that could impact stablecoin issuance and usage.

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