Stablecoin regulation 'good for dollar adoption globally,' says former Binance.US CEO

Quick Take

  • Former Binance.US CEO Brian Brooks believes clear stablecoin regulation benefits the U.S. dollar — even though regulators aren’t major proponents.

Valor Capital Group partner Brian Brooks believes clear stablecoin regulations benefit the U.S. dollar — even as some U.S. lawmakers argue it could be harmful to the financial system and economy. 

Brooks — the former CEO of Binance's U.S. arm and a former acting U.S. Comptroller of the Currency — told CNBC on Friday that the Biden administration's apparent opposition to stablecoins is less than ideal.

“If only the U.S. government would create a framework that allows dollars to back stablecoins in a regulated way, that demand would flourish,” Brooks said.

“That would be good for dollar adoption globally, but as long as we’re allowing governments to suppress stable coins, you have the sort of push-pull phenomenon, which is what creates the problem," he added. 

Stablecoins are crypto assets — usually tokens — pegged to a fiat currency, such as the U.S. dollar, or another asset, such as gold.

Brooks cited foreign demand for U.S. dollar-pegged stablecoins in countries experiencing high inflation, where it may be difficult to open a U.S. dollar bank account, as a major driver.

“Demand for [stablecoins are] a way for us to make the dollar relevant again at a time when governments around the world are looking to decouple from the dollar,” Brooks also explained to CNBC.

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