A bill that would establish a regulatory framework for stablecoins would be a positive move for the industry, Michael Zuccarelli, co-founder of Terra Hosting, told Newsmax on Monday.
"Bitcoin is to be free and money for the entire world. But when it comes to stablecoins, we want regulation. Anything that is pegged to the dollar, we want that to be regulated," Zuccarelli said on "Newsline."
"We want that to be backed up. We want consumers to feel safe when they're using stablecoins and get out of that negative consensus regarding crypto and stablecoins in general."
The House is set to vote this week on a bill that would create a set of federal requirements for stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg.
They are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say they could be used to send payments instantly.
The House this week is also expected to pass an industry-backed bill that aims to develop a regulatory regime for cryptocurrencies and would expand the Commodity Futures Trading Commission's oversight of the digital asset industry.
If signed into law, the bill would define when a cryptocurrency is a security or a commodity and clarify the Securities and Exchange Commission's jurisdiction over the sector, something crypto companies heavily disputed during the Biden administration. That could help crypto companies avoid the oversight of the SEC, which under the Biden administration sued a number of crypto exchanges for flouting its rules.
Zuccarelli said having commonsense policy "is important. President [Donald] Trump has spoken about this, and I'm glad that Congress is acting in a bipartisan way with this. It's super important. You know, we want to be the leader with cryptocurrency around the world. We don't want our adversaries taking advantage of this trillion dollar emerging industry. It's going to change everything that we know about traditional finance.
"The U.S. should lead the way. And it's not just the crypto and value of dollars. It's also the technology behind it that it's bringing. It's working with artificial intelligence. They're kind of cousins in this area. With blockchain. We need to be the leader here."
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Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.