In an interview on Monday, U.S. Representative French Hill highlighted ongoing legislative efforts to enable the private sector to lead the development of a dollar-backed payment stablecoin and predicted a quicker market entry for spot Ethereum ETFs compared to Bitcoin ETFs.
French Hill, chair of the subcommittee on digital assets, spoke on CNBC’s “Squawkbox” about the future of stablecoin policy in the United States.
“We are still working on a payments stablecoin bill that will let the private sector lead in developing a dollar-backed payment stablecoin,” Hill stated.
Hill emphasized that the bill aims to empower private companies to drive the creation of a dollar-backed payment stablecoin, underscoring the importance of leveraging private sector capabilities to advance stablecoin technology in the financial sector.
In August 2023, PayPal introduced PayPal USD (PYUSD), a stablecoin backed by secure and highly liquid assets.
“I think the concept of tokenized payments through a payment stablecoin makes sense within certain blockchain applications,” Hill added.
Hill noted that the recent legislative push is an effort to ensure regulatory clarity and consumer protection in the stablecoin market.
Benefits and Risks of Stablecoins
Stablecoins have been touted as a solution to crypto volatility, aiming to maintain a stable value relative to a specified asset or a pool of assets, like the US dollar.
A stablecoin held in bank accounts could safely expand and enhance the money supply of any currency. A stablecoin pegged to the U.S. dollar can boost economic growth by enabling more efficient use of the dollar, leading to quicker and cheaper transactions.
However, potential economic risks associated with stablecoins include legal issues, governance concerns, operational resilience, money laundering, terrorist financing, consumer protection, and impacts on monetary policy and financial stability.
Spot Ethereum ETF
Representative Hill also predicted that spot Ethereum ETFs would reach the market faster than Bitcoin ETFs did earlier in 2024.
Hill explained that the correlation between the cash and futures markets “enhances the assessment of Ether and puts it on a slightly shorter timeframe than we saw with the Bitcoin process.”
Summary Review: French Hill‘s insights reflect a strategic push to position the U.S. as a leader in stablecoin innovation and to expedite the approval process for Ethereum ETFs. By focusing on regulatory clarity and leveraging private sector capabilities, the aim is to enhance the stability and efficiency of digital transactions while ensuring consumer protection and market integrity.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
