Categories: Finance

VanEck CEO: “Stablecoins should be treated like investment products”

VanEck CEO: “Stablecoins should be treated like investment products”

VanEck CEO Jan van Eck believes that stablecoins should be viewed as investment funds, not banks.

Jan van Eck published an article in which he proposed a “clear, elegant and far-sighted approach to regulating stablecoins.” The announcement was made in response to a proposal by the US President’s Financial Markets Task Force to subject stablecoins to the same rigorous federal oversight as banks.

Deputy Secretary of the Treasury Nellie Liang, at a recent hearing in the US Congress, advocated issuing stablecoins only by insured depository institutions or IDIs – financial institutions insured by the US Federal Deposit Insurance Corporation (FDIC).

However, Jan van Eck considers this approach “incorrect”. According to him, stablecoins invest in securities, they cannot lend capital, as banks do. Van Eck suggested that the US Securities and Exchange Commission (SEC) control stablecoins for a four-year trial period, similar to how the SEC regulates investment funds.

In addition, van Eck proposed not to levy taxes on stablecoins in the future. This measure, in his opinion, will give stable cryptocurrencies an opportunity to prove their value to the United States.

Earlier, analysts at the Federal Reserve Bank of New York said that the use of stablecoins in the traditional banking system will lead to a shortage of safe and liquid assets.

Source: Bits