Stablecoin and regulation: at the center of the first hearing of the subcommittee for digital assets in the USA

The regulation of stablecoins was the dominant theme of the first hearing of the Senate Banking Subcommittee on Digital Assets, marking a key moment for the future of cryptocurrencies in the United States. 

The meeting saw the participation of senators and prominent figures from the industry, with a focus on the legislative measures necessary to ensure the security and stability of these digital assets.

A new regulatory focus on stablecoin regulation

While Bitcoin was only marginally mentioned, the discussion focused on the regulatory implications of stablecoin, considered a priority for the financial sector and for US policy.

The debate touched on topics such as the transparency of transactions, the prevention of illicit activities, and the need for a clear legislative framework that balances innovation and security.

Among the prominent participants were Tim Massad, former Chairman of the CFTC, Jai Massari, Chief Legal Officer of Lightspark, and Jonathan Jachym, head of policy at Kraken.

Senator Cynthia Lummis, a well-known supporter of cryptocurrencies, opened the hearing with the aim of promoting bipartisan regulation that provides certainty to industry operators without stifling technological development.

Regulation of stablecoins: transaction monitoring and AML regulations

One of the most discussed aspects has been the monitoring of transactions in stablecoin to prevent money laundering and other illicit activities.

Massad has proposed to extend the regulatory perimeter, suggesting that smart contracts can be programmed to ensure compliance checks before a transaction is approved.

This approach aligns with the need to strengthen AML regulations (Anti-Money Laundering), preventing stablecoin from becoming instruments for non-transparent financial operations. 

The idea of active monitoring by issuers was at the center of the discussion, with the goal of establishing more effective supervision without hindering the adoption of blockchain technology.

“`html

A balance between regulation and innovation

“`

Another key theme of the hearing was the need for balanced regulation, which does not hinder the development of stablecoin but at the same time ensures investor protection and the safety of the financial system. 

Jai Massari highlighted that the public nature of blockchains already allows for a certain level of transparency, enabling authorities to monitor transactions without imposing overly restrictive regulations.

The debate highlighted a growing awareness among U.S. political institutions about the importance of stablecoin in the future of digital financial markets. However, the crucial issue remains the definition of clear and shared rules that can ensure stability without compromising innovation.

“`html

Conclusions

“`

The first hearing of the Senate Banking Subcommittee on Digital Assets marked a pivotal step in the regulation of stablecoins in the United States. 

While on one hand there is a clear desire to regulate the sector to limit risks and illegal activities, on the other hand, the need for an approach that does not stifle technological development emerges.

The focus on stablecoins demonstrates how they are now seen as a central element of the digital economy, with a potential impact also on the traditional financial system. The debate on their