Senate banking committee to hold hearing on stablecoins

The U.S. Senate's Banking, Housing and Urban Affairs Committee will hold a hearing next week focused on the use of stablecoins.

"Stablecoins: How do they work, how are they used, and what are their risks?" will take place on Tuesday, Dec. 14 at 10:00 a.m. EST. The session will convene in Dirksen Senate Office Building 538 and will also be streamed on the senate's website. 

Alexis Goldstein, Director of Financial Policy at the Open Markets Institute and Professor Hilary J. Allen, American University Washington College of Law are confirmed as witnesses, but additional witnesses may be added ahead of the hearing. Written remarks have not yet appeared.

Scrutiny on stablecoin operators has been heating up in recent months with the release of the President's Working Group report on stablecoins last month. That report called on legislators to restrict stablecoin issuance to banks.

Additionally, Sen. Sherrod Brown (D-OH) sent letters on Nov. 23 asking stablecoin operators to open up about their processes for minting and redemption and detail any special arrangements they have with specific trading platforms. As chair of the Senate Banking Committee, Brown will likely lead questioning in the upcoming session. 

The House of Representatives is also expected to focus on stablecoins at tomorrow's Financial Services Committee hearing, which will bring six leaders of crypto-focused firms together. The recent hearing "Demystifying Crypto: Digital Assets and the Role of Government," saw multiple witnesses from a range of backgrounds — including Goldstein — lay out the key areas crypto regulation will have to cover.