The Chief Executive Officer of investment firmVanEck, Jan van Eck, says that stablecoins should be regulated as investment products and not banks.
Van Eck maintains that stablecoins and money market funds were similar, something he faults authorities for not treating them as such.
The executive recommends that the SEC regulate the assets for a four-year trial phase under the same consideration as investment funds. Van Eck also advises that the regulators should not force tax withholdings on stablecoins in the future.
The US undersecretary for Domestic Finance, Nellie Liang, told Congress that stablecoins were like banks and investment products and needed relevant regulations.
The views by Liang resonate with that of the President’s Working Group for Financial Markets, who recommended that stablecoins be regulated just like banks. PWG added that stablecoins issuers ought to be insured by depository institutions.