Coinbase executives mounted a coordinated defense of payment stablecoins, prompting them to respond to a Wall Street Journal column. The article asked whether privately issued digital dollars pose a systemic risk to the US economy.
Both Chief Legal Officer Paul Grewal and Chief Policy Officer Faryar Shirzad supported the Digital Asset Market Clarity Act. Their statements indicate high-level support for the market structure bill currently being worked on in the Senate.
Refund your money
Grewal framed stablecoin oversight as a risk management issue, not a public-private debate.
Coinbase CLO, which has Push for regulatory clarity In previous testimony, they compared digital dollars to private health care and transportation. He said that the regulatory ground is more important than the source.
“‘Private’ money is not inherently riskier than healthcare, security or private transportation. What is important is how these risks are managed, as well as access and oversight. CLARITY encourages all of this,” Grewal male.
Shirzad extended the argument further Coinbase Policy ResponseNoting that approximately 90% of M2 already consists of privately exported instruments.
These include commercial bank deposits and shares of money market funds.
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Why GENIUS is different from bank rules
the Stable GENIUS frameworksigned last July, requires payment issuers to hold cash and short-term US Treasuries. Reserves must support tokens one-to-one.
The law directly prohibits loans, leverage, and fractional reserves. Sherzad said bank-style supervision would not include actual risks.
Commercial banks get their system because they lend, transfer maturities, and run 10-to-1 leverage. Stablecoin issuers do none of that by law.
He also pointed to monthly reserve certifications and real-time on-chain visibility. He said that the framework provides transparency that cannot be matched by bank deposits.
Political signal
Support is falling while Vote banking clarity in the Senate The bill pushes toward full floor testing. Markets read Grewal’s stance as a political indicator.
Industry support at this stage could form the final language on stablecoin returns and market structure rules. only Two windows before the midterm It remains until CLARITY passes.
The question now is whether the Senate is able to reconcile its version with the draft law approved by the House of Representatives. November will close the legislative amphitheater.
this post Coinbase executives drop most bullish stablecoin message yet on CLARITY bill appeared first on BeInCrypto.
