Strategically, the US Treasury has no interest in killing the #DeFi ecosystem. However, it wants to ensure that a treasury backed stablecoin remains the dominant #stablecoin in the ecosystem as to grow the global demand from US treasuries from this ecosystem.
As we are seeing with the #Mica regulations coming for the EU, the US Treasury cannot count on centralized exchanges regulated by foreign jurisdictions to keep US backed stablecoins on those platforms.
Also, the US Treasury doesn’t want to see the emergence of #crypto backed stablecoins that could compete against US backed stablecoins.
If you look at the #FIT21 bill and other proposed US bills, it seems that keeping DeFi out of reach of the regulators plus establishing a standard for a US backed stablecoin are two strategic moves that would align with the interest of the US Treasury to grow an emerging demand channel for US treasuries.
LogicallyMinded
npub1s0…2rqf5
2024-05-25 04:59:10
Author Public Key
npub1s0fs9dwztm2rukm42vh6df4a5gwykclf75tgyeuc75t0cs2eh8rsu2rqf5Published at
2024-05-25 04:59:10Event JSON
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"kind": 1,
"tags": [
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"content": "Strategically, the US Treasury has no interest in killing the #DeFi ecosystem. However, it wants to ensure that a treasury backed stablecoin remains the dominant #stablecoin in the ecosystem as to grow the global demand from US treasuries from this ecosystem. \n\nAs we are seeing with the #Mica regulations coming for the EU, the US Treasury cannot count on centralized exchanges regulated by foreign jurisdictions to keep US backed stablecoins on those platforms. \n\nAlso, the US Treasury doesn’t want to see the emergence of #crypto backed stablecoins that could compete against US backed stablecoins. \n\nIf you look at the #FIT21 bill and other proposed US bills, it seems that keeping DeFi out of reach of the regulators plus establishing a standard for a US backed stablecoin are two strategic moves that would align with the interest of the US Treasury to grow an emerging demand channel for US treasuries.",
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}