Denelle Dixon, CEO, Stellar; Image: Tom Williams / CQ-Roll Call Inc via Getty Images
The regulation of the crypto industry is becoming stricter in the United States, and there is also a trend of countries moving away from the dominance of the US dollar. However, the leader of Stellar believes that regulating stablecoins could potentially address this issue.
Denelle Dixon, the CEO of Stellar, expressed her positive outlook on the possibility of regulating digital assets that are pegged to the US dollar in the United States during an interview with Bloomberg on April 11.
Dixon mentioned that she believes there will be some type of stablecoin regulation implemented by the end of 2023 as regulators aim to set a standard. She also highlighted the importance of having a strong US dollar globally and suggested that a stablecoin pegged to the USD could help achieve this goal.
Although the Biden administration has recognized the importance of stablecoin regulation in the US, Dixon believes that it needs to be pushed through Congress. She expressed concern that if the US does not act, other countries will develop more favourable legislation for crypto companies, which could result in US consumers being at a disadvantage.
According to Dixon, the focus should be on demonstrating the utility and value of stablecoins to users, rather than just the technology behind them. She remains optimistic about the prospects of stablecoin regulation, noting that it is necessary for the industry's growth and success.
Stellar is a network that facilitates cross-border payments using the Lumens token. It was created in 2014 as a modified version of Ripple's codebase.
Currently, stablecoins make up approximately 10.5 percent of the entire crypto market capitalization with a circulating supply of $133 billion.
Tether, the market leader in stablecoins, has issued $14 billion in USDT so far this year and has a market share of 60 percent with a circulation of $80 billion.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash