The Chamber of Digital Commerce (CDC) called on the U.S. Congress to create a commission for developing regulation of cryptocurrencies and blockchain technology. They warned that the passivity of local lawmakers in this area threatens the leadership and dominance of the U.S. dollar. Meanwhile, issuers of the largest stablecoins spent over $1.3 million in 2022 to lobby Congress to provide a legislative framework for dollar-backed digital assets.
The lobbying group, supported by Goldman Sachs, Citi Group, Circle, and Fidelity, called on the U.S. Congress to create a special commission to develop a regulatory framework for cryptocurrencies and blockchain technology.
The commission, called the Digital Asset and Blockchain Technology Solarium Commission in a document, should focus on developing a “national strategic approach to digital assets and blockchain technology” in the United States that could make the U.S. economy more competitive. The CDC members warned that a lack of regulatory action could allow “hostile countries” that are actively exploring the blockchain space and developing a regulatory framework for digital assets to outperform the U.S., and thereby threaten the country’s leadership in the global market.
Notably, China, whose blockchain development is actively supported by the government, was mentioned as the main adversary. For example, the development of the Chinese state Blockchain Services Network (BSN) and the related development of the Universal Digital Payments Network (UDPN) led to an increasing number of countries choosing direct trade relations with China and refusing to use the U.S. dollar.
It has come to light that the issuers of the largest stablecoins, Tether and Circle, have spent more than $1 million since 2022 to lobby for their interests in the U.S. Congress. The lobbying is primarily aimed at supporting legislation related to stablecoins.
According to ProPublica, Tether, a USDT stablecoin issuer, has spent about $120,000 quarterly since 2022 on lobbying the U.S. Senate and House of Representatives. In total, Tether invested about $600,000 to advocate its interests in the U.S. Congress over the past year.
Circle, an issuer of the second-largest stablecoin USD Coin (USDC), is also actively investing in lobbying. ProPublica reports that since late 2021, the firm has spent at least $560,000 to lobby its interests in the Senate, House of Representatives, Department of Treasury, Financial Industry Regulatory Authority, Commodity Futures Trading Commission, and Securities and Exchange Commission. Circle’s quarterly budget for this purpose is approximately $100,000.
Previously, Stellar CEO Denelle Dixon pointed out that stablecoins pegged to the U.S. dollar could strengthen the position of the U.S. currency in the world market. At the same time, the U.S. Congress is actively discussing a bill to regulate stablecoins, despite the fact that representatives of the Department of the Treasury believe that they pose a threat to the country’s financial stability.
