• Katherine Dowling, Bitwise’s Chief Compliance Officer, predicts that US Congress will move to regulate stablecoins this year.
• She believes that such a move could be beneficial for the crypto industry, as it could provide an example of what can happen in the absence of regulation.
• The current US Congress has convened and there is a shift in US politics which could reflect on the regulation of the crypto industry.
Katherine Dowling, the General Counsel and Chief Compliance Officer of the cryptocurrency index fund provider Bitwise Asset Management, believes that the US Congress is likely to move to regulate stablecoins this year. She believes this could be beneficial for the crypto industry and provide an example of what can happen in the absence of regulation.
The 118th United States Congress, the current meeting of the legislative branch of the federal government, which is composed of the Senate and the House of Representatives, convened on January 3, 2023. This shift in US politics could bring about changes in the regulation of the crypto industry, particularly with regard to stablecoins.
When asked by CoinDesk TV how soon there would be action on stablecoin regulation, Dowling said, “I think we are going to see renewed interest in stablecoin legislation with the new Congress”. She added that 2022 was a year of many different bills being proposed and politicians looking for definitions and regulations of the crypto space, “so we had some great momentum moving into the end of the year”.
Dowling also referred to the recent collapse of the FTX exchange as an example of what can happen when there is no regulation. She believes that having companies that are onshore and subject to clear regulation would make all the difference, and the new Congress could provide an opportunity to do so.
Dowling is hopeful that stablecoin legislation will arrive this year and believes it could be beneficial for the crypto industry. She said that it is important to have clear regulations that are enforced and that these regulations should be tailored to the industry. With the new Congress in place, it is likely that we will see some form of regulation of the crypto industry this year.