Brad Garlinghouse, CEO of Ripple Labs, predicts that regulatory clarity for stablecoins will come by 2024.
In a new interview with CNBC International, Garlinghouse says the US government will set clear guidelines for the stablecoin industry this year, as he believes dollar-pegged crypto assets have an important use.
“I think there will be legislation that will be passed this year. I won’t be too predictive about which one I think, but chances are the [Clarity for Payment Stablecoins Act] – I can’t remember the name of the bill that went through the system in Washington DC – but I think we’ll see that in part because the US Treasury Department wants it.
I think the stablecoin market has really surprised people in some ways in terms of solving a real need, and I think it only makes sense if there’s regulatory clarity, which I think is good for the whole sector.’
Garlinghouse goes on to say that stablecoins like USDT and USDC are here to stay and that if they have any skeletons in their closet, they will be revealed once clear guidelines are set for the emerging crypto sector.
“One of the things you said earlier is, are there skeletons in the closet? The stablecoin market, since there are no clear rules of the road, will be interesting if that comes to fruition.
The two primary ones [stablecoins] – obviously USDT and USDC – I think they are here to stay and I think you will see other new entrants into that market as well.”
The Clarity for Payment Stablecoins Act was proposed last year and would require stablecoin issuers to hold all reserves associated with dollar-pegged digital assets in U.S. dollars, Treasuries or fully collateralized repurchase agreements.
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