RIYADH: Congress must pass legislation to regulate cryptocurrencies before their rapid growth and popularity poses risks to investors and the financial system, the chairman of the Joint Economic Committee said.
Don Baer, who held a hearing Wednesday on “crypto demystification,” acknowledged that most lawmakers have a steep learning curve when it comes to digital assets, but said it was imperative that they provide guidance to regulators, Bloomberg reported.
Bayer added that he would be happy if the bill was passed sometime next year. “We are trying to get ahead of this,” Beyer said in an interview.
Meanwhile, Federal Reserve Governor Christopher Waller said on Wednesday that stablecoins do not need to be regulated by the same rules as banks during a virtual conference organized by the Federal Reserve Board in Cleveland.
He explained that while banks should be able to issue stable-coins, not all stable-coin issuers need to be banks.
He also emphasized that the regulatory and supervisory framework for payment stablecoins should address the specific risks that these arrangements pose directly and fully.
"It does not necessarily mean imposing the full banking rulebook, which is geared in part toward lending activities, not payments," Waller said.
Crypto Services Partnership
Bitcoin services company NYDIG has forged a sponsorship deal with the two-time NBA champion basketball team Houston Rockets.
The deal will allow NYDIG to be the team’s official bitcoin service and bitcoin platform partner, which means the company will have exclusive access to many of the franchise spaces including social, digital and in-arena platforms.
The Houston Rockets will also work with NYDIG to expand knowledge and awareness about the cryptocurrency world and the uses of these new investment tools.
"Our organization has leaned on advancements in technology to remain on the cutting edge. Partnering with NYDIG allows us to leverage the growth of Bitcoin to provide creative rewards and payment options to our fanbase and associates," Houston Rockets President of Business Operations Gretchen Sheirr said.
Bitcoin, the leading cryptocurrency in trading internationally, traded lower on Thursday, falling by 4.58 percent to $59,285 at 4:51 pm Riyadh time.
Ether, the second most traded cryptocurrency, traded at $4,178, down by 1.27 percent, according to data from Coindesk.