David Sacks from the Trump administration states that their team is working on stablecoin regulations and striving to establish a US-based stablecoin market. Through these policies the administration works to regulate tokens linked with dollars within US borders while securing the dollar’s financial market leadership position.
During his CNBC interview on Feb. 4 Sacks stated that following a $227 billion industry’s offshore presence the administration wants to combine stablecoin operations with American markets. According to Sacks the stablecoin’s strength is its ability to strengthen US dollar dominance worldwide and ensure digital payment processing.
Stablecoins Support US Bonds
He revealed that stablecoins could build demand for US government bonds which would help manage national debt and lower future interest rates. The US Treasury moves forward with stablecoin rules that support President Trump’s executive order with its goal to develop the US dollar digital standard.
According to the order stablecoins became the favored digital currency for dollar alternatives rather than CBDCs. The administration uses its resources to strengthen stablecoin products that work in US markets. Although Circle’s USD Coin (USDC) meets the regulatory standards as a fully reserved stablecoin in the US the market remains controlled by Tether’s USDT which holds more than 60 percent of total stablecoin market value.
Recent officials in the EU determined USDT does not match their financial rules. By holding US securities, Tether states that their product supports overall financial market stability. Sacks stated that US lawmakers would create laws next to help stablecoin projects operate in America. A new regulatory system will demonstrate stablecoin rules to investors and authenticate more dollar use for digital money transfers.
Under the Trump administration stablecoin progress remains central in promoting Bitcoin development and blockchain advancement which will speed up rules for this market. The United States aims to control digital dollar activity at home over other countries as it promotes stablecoins to strengthen dollars worldwide. Major stablecoin companies and banks must adapt their strategies to succeed in the rising regulatory controls.
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