- Timothy Massad, former CFTC chairman, emphasizes the potential of stablecoins, highlighting their role as a bridge between the crypto and real-world finance.
- Despite the skepticism of regulators, Massad insists that stablecoins can expedite payment systems and urges the U.S. to consider the development of its own stablecoin.
Timothy Massad, former chairman of the United States Commodity Futures Trading Commission (CFTC), advocates for more governmental attention to be directed towards the stablecoin ecosystem. In a recent CNBC interview, he underscored the crucial role stablecoins can play as intermediaries between the crypto realm and traditional finance.
Advocating Stablecoins Amid Regulatory Hesitancy
Massad expressed concern that regulators often undervalue the potential of stablecoins due to skepticism surrounding their practical applications.
“I’m sympathetic to a lot of people in the government saying […] we’re not convinced of the use case here; we don’t really see what the value is in the real world,” he commented, going on to note, “but sometimes it takes time to really discover that.”
Massad has consistently voiced his support for stronger crypto regulation and urged for closer collaboration between the CFTC and the U.S. Securities and Exchange Commission (SEC) concerning digital assets. His comments resonated with a recent report from the U.S. Government Accountability Office (GAO), which advocated for interagency cooperation on crypto regulations.
In the CNBC interview, Massad highlighted the untapped potential of stablecoins to revolutionize payment systems in the U.S. He argued that if the U.S. developed its own stablecoin, it could inspire other nations to follow suit.
“I think the competition from stablecoins could be useful, again, if we address the risks, and they are significant,”
he noted.
Stablecoins, he suggests, are already prompting banks to reconsider their existing operating models and explore improvements. In the past, Massad has criticized the U.S. for its lack of speed in creating a central bank digital currency (CBDC).
His remarks come amidst an ongoing debate within U.S. regulatory bodies about crypto industry regulations, including potential laws impacting the issuance and usage of stablecoins.
