Dec 11, 2020
Rohan Grey, assistant professor
at Willamette Law, talks about the STABLE Act, which would require
stable coin issuers to obtain a banking charter, require approval
from the Federal Reserve and require issuers to have FDIC
insurance. In this episode, Grey, an advisor to the bill,
discusses:
- how
the past history of financial innovation and events that have posed
systemic risks necessitates the STABLE Act
- how
he, not being a staff member of Congress, became involved in the
bill
- how
the bill would prevent stablecoin issuers from committing crimes
that banks have perpetrated by requiring them to become
banks
- why
he believes open source smart contracts enforcing rules and public
audit-able blockchains are not a fundamentally new way to prevent
the type of events that pose systemic risks that the STABLE Act
aims to prevent
- why
existing regulatory and licensing regimes are
insufficient
- how
he would answer people from countries like Argentina who have had
their currency devalued by their government the STABLE Act, and who
might say this bill exposes them to a different type of
risk
- how
much the rollout of Facebook's Diem, as opposed to existing
stablecoins such as Tether, USDC or Dai, was a motivation for this
bill
- whether, by focusing narrowly on systemic risk,
this bill could squash crypto and fintech innovation that could
help the un- and under-banked
- whether he sees any path forward for this bill
to be passed
Thank you to our sponsors!
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Episode links:
Rohan Grey: https://twitter.com/rohangrey
STABLE Act:
https://tlaib.house.gov/media/press-releases/tlaib-garcia-and-lynch-stableact
Introduction of
bill:
https://www.coindesk.com/us-lawmakers-introduce-bill-that-would-require-stablecoin-issuers-to-obtain-bank-charters
Implications of the bill for
running an Ethereum node:
https://www.coindesk.com/stable-act-ethereum-node-illegal
https://www.coincenter.org/the-unintended-consequences-of-the-stable-act/
https://www.coindesk.com/stable-act-ethereum-node-illegal
Rohan Grey and Jeremy Allaire
interviews on The Block Live: https://www.pscp.tv/w/1OwxWVgmqyMJQ
Unchained interview with acting
Comptroller of the Currency Brian Brooks:
https://unchainedpodcast.com/acting-comptroller-of-the-currency-brian-brooks-on-crypto-banks/
Link to the Crypto News Recap:
https://unchainedpodcast.com/why-mass-mutuals-btc-buy-is-so-significant/