Ripple Labs chief executive Brad Garlinghouse is predicting that regulatory clarity will come to stablecoins in 2024.
In a new interview with CNBC International, Garlinghouse says that the US government will create clear guidelines for the stablecoin industry this year as he believes dollar-pegged crypto assets have important utility.
[adinserter block="1"]“I think this year there will be legislation that passes. I won’t be as predictive about which one I think, but the likelihood is that the [Clarity for Payment Stablecoins Act] – I can’t remember the name of the bill that has been going through the system in Washington DC – but I think we will see that in part because the US Treasury 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 for there to be regulatory clarity around that I think that’s good for the whole industry.”
Garlinghouse goes on to say that stablecoins such as USDT and USDC are here to stay and that if they have any skeletons in their closet, they will come to be known once clear guidelines are established for the nascent crypto sector.
“One of the things you said earlier is, are there skeletons in the closet? The stablecoin market, because there hasn’t been clear rules of the road, it’ll be interesting as that comes to fruition.
The two primary [stablecoins] – obviously USDT and USDC – I think they are here to stay and I think you’re going to see other entrants in that market too.”
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, government securities, or fully collateralized repurchase agreements.
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