The Importance of Parity in US Stablecoin Legislation
MoonPay CEO Ivan Soto-Wright has recently emphasized the need for parity between state and federal oversight in upcoming US stablecoin legislation. In a letter addressed to the Senate Banking and House Financial Services Committees, he expressed support for the Conference of State Bank Supervisors (CSBS) and their proposed amendments to the STABLE Act and GENIUS Act. Soto-Wright believes that state-regulated stablecoin issuers should have an equal playing field as Congress shapes the future of digital asset regulations.
This is not the first time that Soto-Wright has raised concerns about this issue. Earlier this year, he cautioned against favoring US-based stablecoin issuers over international counterparts, warning that such a move could hinder innovation in the industry. He pointed to Tether as an example of an international issuer that has demonstrated high compliance standards by collaborating with law enforcement agencies globally.
Soto-Wright’s push for parity is driven by his belief that current legislative drafts could concentrate too much power in the hands of federal agencies, particularly the Office of the Comptroller of the Currency (OCC). He argues that this could potentially disadvantage state-regulated firms like MoonPay, which operates under 46 state money transmitter licenses and serves over 30 million users.
As Congress debates various bills aimed at regulating stablecoins, the GENIUS Act stands out for proposing a dual regulatory system that empowers state payment stablecoin regulators to implement federal standards. This approach contrasts with other proposals that seek to centralize regulatory authority at the federal level, potentially marginalizing state regulators.
In conclusion, achieving parity between state and federal oversight in US stablecoin legislation is crucial for fostering innovation and maintaining a competitive landscape in the digital asset space. MoonPay’s CEO’s advocacy for a balanced regulatory framework reflects a broader industry concern about the potential consequences of consolidating regulatory authority at the federal level. It is essential for policymakers to consider the diverse perspectives within the industry and strive for a regulatory framework that supports both state and federal oversight.