Former CFTC Chair on How to Regulate Stablecoins Without Passing Any New Laws

Odd Lots

Bloomberg

News, Investing, Business, News Commentary, Business News

4.4 • 1.6K Ratings

🗓️ 22 September 2022

⏱️ 48 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Stablecoin regulation has become a hot topic, and for very good reason. For one thing, it's an extremely fast growing space. Stablecoins are also a primary way that the crypto interacts with the banking system. And beyond that, as we know, crises often originate from assets that promise to be safe (remember money market mutual funds that broke the buck during the 2008 financial crisis. But are regulators equipped to deal with stablecoins under existing law? On this episode, we speak with Timothy Massad, the former chair of the CFTC and a current research fellow at Harvard's Kennedy School of Government. He explains why he believes regulatory progress can be made right now with the laws that currently exist, and what a new arrangement for issuers would look like.

See omnystudio.com/listener for privacy information.

Transcript

Click on a timestamp to play from that location

0:00.0	As of 9-1-20-23, you may earn a 5.5% annualized yield with six-month T-bills of held to maturity.
0:06.4	But who's got time to purchase US Treasuries? Doesn't that involve going to a bank?
0:10.0	Or navigating a government website that looks like it was designed in 1996?
0:13.6	Turns out, you can go to public.com, purchase Treasury Bills in seconds,
0:17.5	and you may be able to earn some of the highest yields we've seen since the year 2000.
0:21.2	Visit public.com slash T-Bill podcast to get started.
0:24.9	This is a paid endorsement by public.com.
0:27.2	Fees and conditions apply. Treasury accounts at public.com or through Gico Securities Inc.
0:31.5	Member Finra and SIPC. Not FDIC insured? No bank guarantee.
0:35.2	May lose value. Full disclosures can be found at www.public.com slash T-Bill podcast.
0:58.1	If they want to. It's fun and AI models and the figure is better.
1:02.0	It's actually just an amazing success story.
1:04.4	Subscribe to Bloomberg Business Week today on Apple, Spotify, or wherever you get your podcasts.
1:21.9	Hello and welcome to another episode of the All Thoughts podcast. I'm Tracy Alloway.
1:26.0	And I'm Joe Wisenthal.
1:27.5	So Joe, didn't we say recently that we were going to be talking about stablecoin regulations some more?
1:32.9	There's never enough. You know, I actually, I have, I think there are lots of reasons
1:37.7	to continue to focus on stablecoin regulation. Why?
1:41.7	Well, I think the biggest one in my mind is this sort of thing I internalized from the
1:46.6	great financial crisis, which is that things blow up when they're promised to be stable.
1:51.5	Yeah, I think that's exactly right.
1:52.8	To me, it's like, I know I do not expect to experience in my lifetime, like a Bitcoin crisis,
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Bloomberg, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Bloomberg and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.