US stablecoin legislation not far off: Bitwise exec

Bitwise Chief Compliance Officer Kathrine Dowling is optimistic on stablecoin regulation in the US in 2023.
According to Dowling, stablecoins will the first to be regulatory as what needs to be done is mostly straightforward.
The US is looking to align with the global regulatory community.

Stablecoins are likely to be the first to get regulated in the US in 2023, according to Katherine Dowling, the general counsel and chief compliance officer at cryptocurrency investment firm Bitwise.

Easier to work out stablecoin regulations

In an interview with CoinDesk TV on Monday, Dowling said the move towards a stablecoin legislation this year is more likely because the sub-industry represents a sector that’s not so complex. Stablecoin regulation is a “narrower issue,” she said. 

Speaking during an appearance on the crypto media outlet’s ‘First Mover’, the Bitwise compliance officer said regulators can easily get hold of issues around stablecoins “a little bit better” than what the broader crypto market represented.

While the events of the past few months, and whose effects continue to be felt across crypto –including the collapse of FTX –derailed the sector. However, with regulatory spotlight on the broader industry, the aftermath could have offered a platform for a rebuilding.

According to Dowling, the issue of proper legislation is an outcome that Congress is keen on.

And legislation, not just for the stablecoin market but also for the broader digital assets space, would entail clarity. This will in turn help rebuild trust in and across the ecosystem, with clear rules key to the US’ plans to keep up with the global regulatory landscape.

While some experts have warned about the potential impact of regulation to crypto innovation, Dowling says having the laws in place is critical. For the United States, these could even see it become a global regulatory standard, a scenario likely to provide the foundation for dialogue on crypto regulation on a global level. 

As reported last week, the European Union is looking to finally ratify its comprehensive crypto regulations, the Markets in Crypto-Assets (MiCA). A final vote on the regulation was recently delayed to April.