- Monetary Authority of Singapore (MAS) approaches Ripple Labs for guidance on new stablecoin regulations.
- Ripple advises MAS to impose regulations on all relevant fronts of Single-Currency Stablecoins (SCS).
Stablecoin Rules Under Scrutiny
In a progressive move, the Monetary Authority of Singapore (MAS) recently shed light on its imminent stablecoin regulations aimed at ensuring value stability. To refine this framework, the MAS has approached 39 eminent entities for their expert insights. This list notably includes blockchain pioneers Ripple Labs and Circle Internet Financial. This collaborative approach came into the public domain through XRP influencer, Crypto Eri, who apprised the crypto community about these developments.
Ripple Labs Weighs In
MAS presented a series of queries to Ripple Labs, ron the viability of the regulations for single-currency stablecoins (SCS). Essentially, an SCS is a type of stablecoin that is pegged on a one-to-one basis with the Singapore Dollar. The primary inquiry revolved around whether the MAS should restrict its regulatory purview to SCS originating within Singapore’s boundaries, or if it should encompass those issued externally.
Ripple’s stance was clear – while they advocated for the MAS to prioritize stablecoins issued domestically, they also accentuated the potential growth and associated systemic risks of the external SCS market in the absence of suitable regulations. Ripple’s recommendation was founded on the belief that regulatory measures for SCS should operate on the principle of uniformity – that is,
“same risk, same activity, same treatment.”
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Moreover, when MAS solicited Ripple’s opinion on appending extra regulatory layers for the payment services associated with SCS issuance, Ripple was in concurrence. They opined that this should be universally applicable to every participant involved in the processes of SCS creation and annihilation.
Furthermore, on the subject of a unified label for SCS – whether it’s bank-originated or otherwise – Ripple endorsed the MAS’s proposal. They advocated for a consistent nomenclature, proposing the term “regulated stablecoin.” Ripple believes that such a standardized name can enhance users’ trust, signifying they are engaging with a supervised entity.
Circle’s Perspective
Circle Internet Financial, the entity behind the USDC stablecoin, echoed Ripple’s sentiments. They lauded MAS’s initiative for extra regulations for SCS issuers. In addition, when MAS requested feedback on the suitability of the proposed reserve prerequisites for SCS, Circle voiced their agreement, considering the reserve asset specifications to be apt.
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