CFTC Studies Three Stablecoins

The U.S. Commodity Futures Trading Commission (CFTC) Advisory Committee has begun considering options for regulating transactions with three stablecoins.

The first meeting of the committee was held on February 26. The regulator wants to learn as much as possible about the stablecoins JPM Coin, MakerDao and Pax. CFTC wants to consider options for insuring investments in such tokens, storing coins and ensuring the security of transactions with them.

The CFTC’s regularly advocates for the early introduction of cryptocurrency legislation. Otherwise, according to CFTC, the U.S. will technologically begin to lag behind other countries, primarily China.

A report by Eddie Wen, head of digital markets on the development of the JPM Coin coin, was submitted to the regulator. The committee is attended by Paxos CEO Charles Cascarilla and the head of the MakerDAO development team, Steven Becker.

They all told committee members about their crypto projects. In addition, Becker told the regulator about the rapidly growing DeFi decentralized services market.

According to CFTC Commissioner Brian D. Quintenz, stablecoins have great potential. The regulatory issue is very important, but it must be approached gradually after evaluating all the risks associated with recognizing stablecoin as a safe asset.

Author: Marko Vidrih

Featured image credit: FxWrite