A high-contour blockchain entrance hall group is urging United States lawmakers to prefer a "technology-neutral" approach when information technology comes to stablecoin regulation, arguing that dollar-pegged cryptocurrencies do non pose a arrangement risk to the financial system.

In a 17-page letter addressed to the President'southward Working Grouping on Financial Markets, which includes regulators from the Department of Treasury and Federal Reserve, the Chamber of Digital Commerce outlined a six-betoken plan for future regulatory activity involving stablecoins.

Co-ordinate to the grouping, stablecoin laws should exist technology-neutral, regulate in a manner that is proportionate to adventure, ensure that the U.S. maintains a competitive advantage in blockchain, recognize stablecoins as digital payment systems as opposed to investments, ensure compliance with existing Anti-Money Laundering guidelines and be underpinned by a flexible, principles-based regime.

On the topic of technology neutrality, the Chamber said stablecoins "should not be subject to a new regulatory regime simply considering new technology is being deployed," calculation:

"New regulatory treatment for stablecoins should only exist invoked to the extent necessary to mitigate unique risks that are non currently addressed past the regulatory government or to account for stablecoins' ability to reduce hazard or provide new benefits."

Established in 2022, the Sleeping room of Digital Commerce has a vast membership spanning blockchain, traditional finance and the information technology sector. Its executive committee includes Binance.US, Bitpay, BlockFi, Citigroup, BNY Mellon, Circle, BNP Paribas, Fidelity Investments, Goldman Sachs, IBM, Mastercard, Visa and Microsoft, among many others.

Related: Usa Treasury reportedly in talks for stablecoin regulation

U.S. regulators are trying to tame the quickly growing stablecoin market place, which has a commonage value of $130 billion at the time of writing. Every bit Cointelegraph reported, the Biden administration is because group stablecoin issuers in the aforementioned category as traditional banks for the purpose of regulation. Last month, Federal Reserve Chairman Jerome Powell said the fundamental banking company has no intention to ban crypto, merely that stablecoins crave more than stringent oversight.

As outlined in the letter, the Chamber of Digital Commerce believes that stablecoins are "already well-regulated at the state and federal level." A regulatory regime that conflates stablecoins with securities risks "imposing an overly rigid" system that "stifles innovation." The Chamber further explained:

"To protect consumers and reduce costs, we encourage the streamlining of state-level regulatory frameworks for stablecoins and the issuance of special-purpose charters by federal banking regulators for stablecoin companies seeking to operate nationally."