Stablecoins is required to the Regulation similar to banks

Randi Ginn, a respectable American banking lawyer, called on Stablecoine to be subject to regulations at the bank level.

Speaking before the US Financial Services Committee, Guini overturn that Stablecoins It should offer the same level of security as insured bank deposits and the money of the Central Bank.

Guinn emphasized that there should be any Regulation on Stablecoin should require issuers to maintain liquidity and capital buffer reserves comparable to those of banks.

“If the publisher, which is Payment of Stablecoin, is properly calibrated by the reserve of liquid assets, the capital buffer, payment stableCoins should be secured by bank deposits and the money of the Ginn” “” “Ginn claimed.

Guinn, chairman Groups of financial institutions in Davis Polk & Wardwell LLP, stated that Stablecoins are basically digital private money and should be regulated accordingly. He quoted historical parallels, noted that private money was playing a role in financial systems long lasting.

However, he warned that without strong supervision, Stablecoins could represent the risks of financial stability similar to those who see themselves in past banking crises.

“People were free during most human history to innovate in creating private money without involving the government, including any request to do so,” Guinn wrote.

Hearing comes in the middle of Discussions are underway In the Stablecoin Regulation Act, an account that aims to set clear rules for issuers. Guinn, who previously contributed the design of the target’s stable project project, claimed that properly regulated stablecoins could improve the payment efficiency while reducing risk.

His testimony adds to a wider discussion whether they should be regulated by steless as banks, monetary funds or a completely new financial category.