The us commodity futures trading Commission (CFTC) met with major issuers of stablecoins to discuss the industry’s problems.
The CFTC Advisory Committee held a public meeting
February 26 in order to get information about stablecoins, crypto asset insurance programs, custodial storage and cybersecurity of cryptocurrencies. The meeting was attended by representatives of three projects: JPM Coin, MakerDao and Paxos.
The Committee discussed various topics related to stablecoins. The first report was presented by Paxos CEO Charles Cascarilla, who told
about the use cases of two current Paxos stablecoin projects. Another report was presented by Eddie Wen, global head of digital markets at JP Morgan. He spoke about the JPM Coin project and its development.
CFTC Commissioner Brian Quintenz said in his opening speech that JPM Coin is designed to digitally represent US dollars stored in JP Morgan Chase accounts, which can be used for instant transfers of payments on the blockchain between JPM’s institutional clients.
MakerDAO Foundation President Steven Becker) he spoke about the Dai stablecoin project and highlighted the situation in the decentralized Finance markets (DeFi). Based on the results of the presentations, CFTC Commissioner Brian Quintenz positively assessed stablecoins as flexible means of exchange and added:
“In order to ensure this correlated value, stablecoins can use tokenization to function as viable, flexible means of exchange and serve as powerful tools for implementing smart contracts.”
Tomasso Mancini-Griffoli, Deputy head of the IMF’s foreign exchange and capital markets Department, who was present at the meeting, stressed that national interests should be taken into account when using stablecoins. According to him, issuers should not forget about issues of financial stability, monetary policy, confidentiality, competition, efficiency, consumer protection and financial integrity.
The CFTC is paying more and more attention to the cryptocurrency industry, including communicating with industry representatives. The CFTC’s financial technology research division recently announced that it will hold a meeting with FINTECH startups in new York on April 1. At the event, LabCFTC will answer questions from companies and discuss industry issues.