Facebook official says stablecoins need more regulations

Facebook and crypto

Facebook official says stablecoins need more regulations

Gary Gensler, chairman at the Securities and Exchange Commission, shared his insights on crypto regulation at the Senate earlier this week. Among other things, he expressed that he definitely sees stablecoin-type digital assets as a safety.

Stablecoin regulations

Gary Gensler made these statements in response to a report on the regulation of stablecoins that is currently being compiled. This report mainly discusses how stablecoins may be useful in the future and how government organizations can best deal with them.

David Marcus fully supports this report. He is one of the top managers of Facebook. Facebook itself will soon start participating in the crypto world, after it was announced that they will come out with a digital wallet, called Novi.

In addition, David Marcus is part of the Diem Association. This is a group of senior people in the tech industry. They will soon come out with their own stablecoin, called Diem. This stablecoin will then be able to be traded between Novi wallets.

A critical David Marcus

So David Marcus himself is fully engaged with crypto, stablecoins and how they can possibly be used on a daily basis in the future. However, he always remains critical.

In an interview with Yahoo Finance, for example, he says that stablecoins probably need further regulation if they are ever to become our new currency. When asked, “Do we need more regulation?”, his answer was, “The answer is probably yes.”

He then continued his answer by saying that the main issue is customer protection. For example, he thinks it’s hugely important that the customer actually knows what they’re dealing with before it can be seen as real currency, for example.

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