- Bitwise Chief Compliance Officer Catherine Dowling is optimistic about stablecoin regulation in the United States in 2023.
- According to Dowling, stablecoins will be the first to be regulatory because what needs to be done is mostly straightforward.
- The United States is looking to align itself with the global regulatory community.
Stablecoins are likely to be the first to be regulated in the United States in 2023, according to Kathryn Dowling, general counsel and chief compliance officer at cryptocurrency investment firm Bitwise.
Easier to establish stablecoin regulations
In an interview with CoinDesk TV on Monday, Dowling said a move toward stablecoin legislation this year is more likely because the sub-industry is a very uncomplicated sector. Stablecoin regulation is “narrower issueShe said.
talk while appearing on the encryption media port”The first mover’, compliance officer Bitwise said regulators could easily get issues around stablecoins “a little better” than what the broader crypto market represents.
While the events of the past few months, the effects of which are still being felt across cryptocurrencies – including the collapse of FTX – derailed the sector. However, with the regulatory spotlight shone on the broader industry, the consequences could have provided a platform for rebuilding.
According to Dowling, the issue of appropriate legislation is an outcome Congress is anxious about.
And legislation, not only for the stablecoin market but also for the broader digital asset space, will necessitate clarity. This, in turn, will help rebuild trust in and across the ecosystem, with clear rules central to US plans to keep pace with the global regulatory landscape.
While some experts have warned about the potential impact of regulation on cryptocurrency innovation, Dowling says that creating laws is critical. For the US, it could see it become a global regulatory standard, a scenario that is likely to provide the basis for dialogue around crypto regulation on a global level.
As reported last week, the European Union is looking forward to finally ratifying comprehensive crypto regulations, the Markets in Crypto Assets (MiCA). The final vote on the slate was recently pushed back to April.