- Paul Ryan urges U.S. lawmakers to promote dollar-backed stablecoins to strengthen U.S. debt attractiveness.
- Ryan calls for a sound, predictable regulatory framework for stablecoins in Congress.
- Embracing stablecoins could prevent a failed debt auction and bolster U.S. financial credibility.
Former Speaker of the House Paul Ryan has made a strong call for U.S. lawmakers to promote dollar-backed stablecoins to enhance the attractiveness of U.S. debt in international markets.
In a recent Wall Street Journal opinion piece, Ryan argued that adopting stablecoins could avert a failed debt auction, a scenario that would severely damage U.S. credibility and disrupt financial markets.
Ryan, who retired from his role as the leading Republican in the House of Representatives in 2019 and now serves on the Policy Council of the crypto-focused VC firm Paradigm, emphasized the strategic importance of a robust and predictable regulatory framework for stablecoins.
He contends that such a framework would make U.S. debt more appealing to international investors, particularly as countries like China expand the influence of their currencies and seek alternatives to the U.S. Treasury debt.
In his article, Ryan pointed to China’s progress with its e-yuan central bank digital currency. Despite HSBC China recently becoming the first foreign bank to offer services utilizing the e-yuan, the currency has struggled to gain widespread adoption.
Nevertheless, Ryan warned that the U.S. cannot afford to remain complacent as its largest international competitor explores digital currency options for settling payments outside the traditional dollar-based system.
Ryan differentiated dollar-backed stablecoins issued on public, permissionless blockchains from central bank digital currencies like China’s e-yuan, highlighting that the former embodies American values of freedom and openness. He cautioned against adopting a similar central bank digital currency in the U.S., proposing stablecoins as a preferable alternative.
The former Speaker also emphasized the urgency of crafting bipartisan legislation to regulate stablecoins in an election year characterized by divisive politics. “In an election year, given all the ugly politics to come, we sure could use a win,” Ryan wrote, calling for cross-party cooperation to achieve this goal.
Ryan’s call to action is set against a backdrop of increasing interest in crypto policy within the 2024 Presidential race. Biden administration officials plan to attend a policy roundtable hosted by Representative Ro Khanna (D-CA), while former President Trump has expressed support for keeping crypto companies onshore.
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