Randy Guine, a leading American banking attorney, has called Stabecrims to be subject to bank-level rules.
Speaking in front of US House Financial Services Committee, Guine Argued That stabechines should offer the same level of security as the insured bank deposit and Central Bank Money.
Guine insisted that any stabechoin regulation should require issuers to maintain liquidity reserves and capital buffers compared to banks.
“If a payment stablecoin issuer has a proper calibrated reserve of liquid assets, capital buffer, and other liabilities, then the payment should be secured as the payment stabex insured bank deposits and the central bank money,” said Guine.
Count, chairman The Financial Institutions Group at Davis Polek and Wardwell LLP said stabechoin is essentially digital private money and should be regulated accordingly. He cited historical similarities, given that private money innovations have long played a role in financial systems.
However, he warned that without strong oversight, stabelins may pose a financial stability risk to those seen in previous banking crises.
“People have been independent during human history to innovate in the construction of personal money without the intervention of the government, including any need to obtain the permission of the government to do so,” Guine wrote.
The hearing comes amid the ongoing discussion on the StableCoin Regulation Act, a bill aimed at setting clear rules for the issuers. Guinein, who had previously contributed to the design of the Dayam Stabecrim project of Mata, argued that properly regulated stabelines may increase payment efficiency by reducing the risk.
His testimony combines a comprehensive debate on whether Stabelin should be regulated as banks, money market funds or a completely new financial category.
