Wed. Jul 17th, 2024

• Former Binance.US CEO Brian Brooks says the White House is attempting to prevent stablecoins from entering the American economy.
• He compares US-backed stablecoins to Bitcoin and says they’re acting as a tool for people in developing economies to fight inflation by allowing them to seek refuge in dollars which typically inflate at much slower rates than their home currency.
• Brooks believes that it is an important policy issue that speaks to the role of the United States plays in the financial system, and not just about crypto.

White House Attempts To Keep Stablecoins Out Of The Discussion

Former Binance.US CEO Brian Brooks has spoken out on CNBC’s Squawk Box, claiming that the Biden administration is attempting to prevent stablecoins from entering the American economy. According to Brooks, this could be due to former Chairwoman Maxine Waters leading her Democratic colleagues in a walkout of a bill related to stablecoins, after reportedly receiving warnings from the White House of a potential veto if passed.

Stablecoins As A Tool Against Inflation

Brooks goes on to compare US-backed stablecoins with Bitcoin (BTC), saying they act as a tool for people in developing economies looking for refuge against inflation by allowing them access to dollars which typically inflate at slower rates than their home currency. He believes this is an important policy issue related to the role of America within the global financial system, and not merely about cryptocurrency itself.

Potential Impact On Crypto Regulation

The implications of this policy have yet to be seen but may impact how regulators view cryptocurrencies moving forward. If true, this could mean increased scrutiny when it comes to any form of digital asset coming into contact with fiat currencies, as well as potentially affect how investors can access and use tokens such as Bitcoin or Ethereum (ETH).

Maxine Waters’ Role

Maxine Waters’ role in all of this still remains unclear; however, her previous involvement with crafting legislation around stablecoin suggests she was involved with creating regulations surrounding digital assets before being threatened with potential veto from the White House. Given that she was part of a Democratic walkout on passing such bills it appears likely that these policies are government-led and not simply from one individual’s point-of-view.

Conclusion

Overall, it appears that the Biden administration has taken steps towards preventing stablecoins from entering into circulation within America’s economy – though further clarification on what exactly these steps entail is needed before we can know more definitively what effect this will have on cryptocurrency regulation and usage going forward

By admin