Financial regulators in the United States are strengthening their control on the crypto industry, and the US dollar has been under pressure as countries distance themselves from dollar hegemony, but Stellar’s CEO argues stablecoin regulation may address that.
Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation spoke on the possibility of regulating dollar-pegged digital assets in the United States in an April 11 Bloomberg interview.
Dixon expressed optimism that some sort of stablecoin regulation would be implemented in the United States by the end of the year because “they want to set the standard.”
“If we want a strong US dollar around the world, a USD stablecoin is the way to get there.” The administration of President Joe Biden has previously emphasized the necessity for a stablecoin regulatory framework, but Dixon believes it must be pushed through Congress.
“If we don’t do something in the United States, we’ll be in this bifurcated world where we have legislation outside the United States that is friendlier to crypto,” Dixon said, adding that
“There will be companies outside of the United States, and there will still be the issue that U.S. consumers will want to use this technology.”
Dixon was upbeat about stablecoin legislation “only because we don’t have a choice,” adding the emphasis should be on the usefulness and value to users rather than the tech stack. “Stop talking about technology and start showing off its utility,” she added.
The Lumens $0.103 token powers Stellar, a decentralized cross-border payments network. In 2014, it was created as a modified fork of Ripple’s codebase. With $133 billion in circulation, stablecoins currently account for around 10.5% of the total crypto market capitalization. Dixon claimed that because the most majority of them are connected to the US dollar, it is critical that they are controlled and accepted in America.
Market leader Tether $1.00 has issued $14 billion in USDT so far this year, strengthening its market share to 60% with a circulation of $80 billion, and strengthening its market share to 60% with a circulation of $80 billion. The gains came at the expense of Circle’s USD Coin $1.00 and Binance’s Binance USD $1.00 stablecoins, which have both witnessed significant supply losses this year.