The US fears that Elon Musk will launch his own cryptocurrency

A new bill aimed at regulating stablecoins has faced opposition in the US House of Representatives Financial Services Committee. Some lawmakers fear that the law could allow tech billionaires such as Elon Musk to launch their own stablecoins and dominate the global payment market.

The bill, submitted by Congressman Don Beyer, would require stablecoin issuers to enter into a banking contract, comply with Fed regulations, and obtain approval from the Treasury Department and the Federal Deposit Insurance Agency. The bill also aims to prevent the use of stablecoins for illegal activities such as money laundering and terrorist financing.

However, some members of the Committee argue that the bill is «too broad» and could hinder innovation and competition in the cryptocurrency industry. They also fear that the new law could give tech giants an unfair advantage in terms of resources and influence.

Maxine Waters, chair of the Financial Services Committee, fears that the bill could allow Elon Musk’s Twitter X to issue its own stablecoin and become a global payment provider.

Waters called it a «scary proposition» and urged her Republican colleagues to reconsider their attitude to the bill. «This is how we can hand the keys to an unregulated market to Mark Zuckerberg, who is being held in contempt of Congress. It’s all because of Facebook’s response to personal data privacy scandals,» said Committee member Patrick McHenry.

Earlier, the U.S. Securities and Exchange Commission classified Solana (SOL), Cardano (ADA), Polygon (MATIC), Coti (COTI), Algorand (ALGO), Filecoin (FIL), Cosmos (ATOM), Sandbox (SAND), Axie infinity (AXS), and Decentraland (MANA) as securities. At the same time, the cryptocurrency community has hardly reacted to the regulator’s statement. Moreover, a number of cryptocurrency platforms took the SEC’s statement as a call to action and delisted their tokens to avoid possible claims.