Coinbase Legal Chief Pushes For Stablecoin Regulation
Coinbase legal chief Paul Grewal urged the United States Congress on April 9 to swiftly enact stablecoin legislation to counter the illicit use of crypto. The executive’s plea comes ahead of the April 10 Senate Banking trial on countering illicit finance, terrorism, and sanctions evasion.
Paul Grewal expressed his concern in a thread post on X. According to him, the only way to address the issue of illicit financing through crypto, despite being a small fraction, was through effective stablecoins legislation.
The Coinbase legal chief emphasized the importance of locating dollar-denominated stablecoins in the United States, suggesting that doing so directly benefits the American financial system.
Additionally, the Coinbase chief highlighted key issues that could be resolved through legislation rather than politics, such as reserve management rules and redemption rights, suggesting that these issues can be addressed with determination and a focus on practical solutions. According to Chainalysis, stablecoins were the defacto crypto among criminals in 2023.
US security interests are served by centering dollar-denominated stablecoins in the home of the dollar. Reserve management rules, redemption rights and all that aren’t hard to address if we have the will to do more than politic. 2/3
— paulgrewal.eth (@iampaulgrewal) April 9, 2024
Grewal’s plea was prompted by Wally Adeyemo’s written testimony on the growing concerns amid the use of cryptocurrencies by terrorists and bad actors to finance illicit operations on a global scale.
Senate Banking hearing tomorrow with witness Deputy Secretary Wally Adeyemo from Treasury. How much is about #crypto and its use in illicit finance in his testimony? All of it, so brace yourselves for
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