The Biden Administration Stablecoin Report Misses the Mark

Source: Cato Institute
by Norbert Michel

“The administration apparently believes that stablecoins can harm their users and pose systemic risks, but that everyone should just wait for Congress to act. Even better, the administration wants Congress to force these supposedly risky stablecoins to be issued only by federally insured banks. That’s mindboggling enough, but it takes supreme audacity to make this recommendation while also calling for new regulations to prevent stablecoins from leading to ‘an excessive concentration of economic power.’ … Preventing everyone outside the banking sector from issuing stablecoins removes a major threat of competition from the banking industry. It’s a move that makes no sense if the goal is to prevent excessive concentration. The truly laughable part is that the logic implies the concentration of economic power is bad, but not when the federal government orchestrates it and forces taxpayers to clean up any of the potential mess.” (11/05/21)