THE REGULATORY UNCERTAINTY AROUND STABLECOIN

Right now, the only this stopping institutional investors from investing in the cryptocurrency market direct is due to regulatory uncertainty. The regulatory uncertainty is mostly based on the stablecoin, it is important because way institutional investors could get huge funds in and out cryptocurrency market and that is the reason why the stablecoin market is large. The regulatory uncertainty around stablecoin is based on the fear that stablecoins compare directly with Central Bank Digital Currency (CBDC) and also the upcoming FED now payment service. The stablecoins issuers are stocked in a corner because if they claim that stablecoins are used for payment, they will be attacked by the FED but if they also claim the stablecoins are used by the cryptocurrency market, they will get attacked by the SEC.

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The reason for this is that Gary Gensler believes that it is only BTC that commodity and all other cryptocurrencies are securities. Claiming stablecoins are security does not make sense because there is no expectation of making a profit when investing in stablecoin. Even with this reason, it hasn't stopped Gary Gensler from going to Paxos which is a stablecoin issuer. We saw Gary Genser show up before the Congress last week and it as being a long he showed up to Congress. The house only focuses on the SEC scrutiny and his lack of competence to provide regulatory clarity to the crypto industry. What Gary Gensler was claiming is that stablecoins are used for payment and not for payment, and he also said that USDC is used for payment.

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This is very important because it has been a long since Circle has been claiming that USDC is used for payment. They have been asking the United States politicians to pass a law that gives the Federal Reserve authority over the payment of stablecoins. I think this is part of the Circle's goal to make USSC the US CBDC. We only saw Circle's chief strategy officer and other people testify before the House a day after Gary Gensler testified. What they talked about was stablecoin regulations, they even shared more light on it. Congress is now working on stablecoin regulation but they are just starting from the beginning which means they will not become law any time soon.