Depositphotos 215819022 xl 2015 Get Ahead of The Curve: Start With Stablecoins and Crypto Custody

Get Ahead of The Curve: Start With Stablecoins and Crypto Custody

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– Jay Clayton, former chairman of the US Securities and Exchange Commission, said that regulatory clarity around stablecoins and custody should be priorities and would help boost the crypto industry.
– Clayton is now an advisory board member at Fireblocks, the crypto custodian, and Of Counsel at law firm Sullivan & Cromwell and spoke at the Bloomberg Crypto Summit on 19 July.
– Clayton believes that the cracks in the crypto ecosystem that have emerged over the past few months have occurred many times before in financial markets.
– Clayton wants regulators to take steps that unleash the power of private markets while still protecting investors, especially retail customers.
– Clayton believes that stablecoins are a safe space for regulation to accommodate new technology which has been demonstrably effective as there are many stablecoin transactions taking place globally, 24/7, without friction.
– Kara Calvert, head of US policy at publicly listed crypto exchange Coinbase, said at the Bloomberg Crypto Summit that recent events such as the collapse an algorithmic stablecoin and a crypto hedge fund have shown that a regulatory framework that provides consistency, such as requirements for disclosures, would give customers and investors more certainty.
– Calvert believes there are many opportunities for responsible regulation over the next six months and agreed that stablecoins is an area where broad agreement is coming together.
– Gillibrand-Lummis bill
– Clayton agreed that the Responsible Financial Innovation Act is an extremely responsible effort by both senators as they are focusing on some key issues such as custody and resolution, which are fundamental to the regulation of any market, and because they are trying to take a coordinated approach.
– The European Union has recently agreed on MICA, the market in crypto assets framework, and Calvert said there is a danger that US is falling behind other jurisdictions in terms of regulating the new asset class, which is global.

 

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