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French Hill talks about the Ether ETF and the stablecoin bill for payments
In an interview on Monday, U.S. Representative French Hill highlighted legislative efforts to allow the private sector to lead the development of a dollar-backed payments stablecoin and predicted faster market entry for spot ETFs on Ethereum vs. Bitcoin ETFs.
U.S. Representative French Hill, chair of the Subcommittee on Digital Assets, discussed future stablecoin policy in the United States during a CNBC “Squawkbox” interview.
“We are still working on a payments stablecoin bill that will allow the private sector to lead… on a dollar-backed payments stablecoin,” Hill said.
Hill said efforts are underway to develop the bill, which would allow the private sector to take the lead in creating a dollar-backed payment. stable currency. This initiative highlights the focus on leveraging the capabilities of private industry to advance stablecoin technology in the financial sector.
In August 2023, PayPal introduced its new cryptocurrency, PayPal USD (PYUSD), as a stablecoin backed by safe and highly liquid assets.
“I think the concept of tokenized payment via a payment stablecoin makes sense within certain applications on a blockchain,” Hill said.
Hill said the latest legislative push last week represents an effort to ensure regulatory clarity on stablecoins and consumer protection in the stablecoin market.
Advantages and risks of stablecoins
In the past, the response to cryptocurrency volatility was effective stablecoinswhich are cryptocurrencies that aim to maintain a stable value relative to a specific asset or set of assets, such as the US dollar.
A stablecoin held in bank accounts would safely expand and enhance the money supply of any currency. A stablecoin pegged to the US dollar can stimulate economic growth by enabling more efficient use of the dollar, leading to faster and cheaper transactions.
Potential economic risks associated with stablecoins include legal issuesconcerns regarding governance, operational resilience, money laundering, terrorist financing, consumer protection and the impact on monetary policy and financial stability.
Ethereum spot ETF
Congressman Hill predicted this too Spot ETF on Ethereum would reach the market faster than Bitcoin (Bitcoin) ETFs did this in early 2024.
Hill said the correlation between the cash and futures markets “enhances Ether’s valuation and puts it on a slightly shorter time frame than we’ve seen in the Bitcoin process.”