As cryptocurrency continues to permeate the everyday lives of the masses, it brings convenience and newly found freedom to places and economies ravaged by mass inflation. Contrastingly, those sitting somewhat comfortably at Capitol Hill seem to have had their feathers ruffled by the ever-growing presence of Decentralised Finance and cryptographic tokens. Increasing concerns about the lack of oversight and policy within the expanding $110 billion stablecoin market have led to the possibility of stablecoin issuers such as Tether and Circle being soon subjected to bank-like regulations. According to a report from the Wall Street Journal, the proposal is part of an upcoming stablecoin report from a Treasury-led presidential advisory group, expected to be released late this month of October. So how could these regulations potentially affect stablecoins? One way the market could change is more transparency. In a recent speech discussing the potential for the USA to have its own central bank digital currency, pro-crypto Senator Cynthia Lummis expressed concern for the authenticity of stablecoins’ financial backing, saying that they “must be 100 percent backed by cash … and this should be audited regularly.” However, not all stablecoin initiatives are created equal. Stablecoins such as EURST set themselves apart through the execution of proper auditing and possession of transparent financial reserves. OCC banking charters have a...
