Haseeb Qureshi, Managing Partner at Dragonfly Capital, says a proposal circulating in the US House of Representatives would deal a major blow to “stablecoins,” stable cryptocurrencies.
Haseeb Qureshi: the new law proposal could deal a big blow to stable cryptocurrencies, stablecoins!
In a recent blog post, Dragonfly Capital managing partner Haseeb Qureshi said the newly proposed “Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act” would deal a major blow to the emerging cryptocurrency sector. Haseeb Qureshi adds the description for the topic:
IF PASSED, THE STABLE ACT WOULD MANDATE THAT STABLECOIN RESERVES BE REGULATED LIKE BANK DEPOSITS. THIS WOULD BE A MAJOR BLOW FOR STABLECOINS, WHICH OCCUPY A SIGNIFICANT PLACE IN THE CRYPTOCURRENCY ECOSYSTEM TODAY.
Haseeb Qureshi: the day Tether is toppled will be like the apocalypse
U.S. representatives Jesus Garcia, Rashida Tlaib and Stephen Lynch introduced the law earlier this month. The STABLE Act, if passed, would require any stablecoin issuer to acquire a banking charter and comply with applicable banking regulations. In addition, companies will be required to notify and obtain approval from the Federal Reserve and the Federal Deposit Insurance Agency (FDIC) and obtain insurance from the FDIC that the firm’s issued stablecoins can be converted into U.S. dollars.
Haseeb Qureshi cites leading stablecoin Tether in his statement. Also, Haseeb Qureshi notes that the USDT is already being investigated by the US Department of Justice, The New York Attorney General and the Commodity Futures Trading Commission (CFTC). Haseeb Qureshi emphasizes that the more supply of Tether increases, the more likely it will be regulated. Haseeb Qureshi adds the description for the topic:
MAKE NO MISTAKE: THE DAY TETHER IS TOPPLED WILL BE LIKE THE APOCALYPSE. CRYPTO MARKETS WILL BE TAKEN OVER, EXCHANGES WILL GO INTO TURMOIL, THE ASSETS OF MILLIONS OF CRYPTOCURRENCY INVESTORS WILL BE FROZEN AND PRICES WILL FALL EVERYWHERE. ANOTHER DEATH WILL BE ANNOUNCED FOR BITCOIN.
Managing partner of Dragonfly Capital: crypto market will continue to thrive
The Managing Partner of Dragonfly Capital says the crypto market will continue to thrive, while the future of stablecoins has a bleak outlook due to potential regulatory backdrop. Haseeb Qureshi adds the description for the topic:
BUT, AS ALWAYS, CRYPTOCURRENCIES WILL EVENTUALLY RECOVER. WHEN THE DUST SETTLES, WE’LL MOVE ON TO PHASE THREE OF THE CRYPTO MARKET. ORDER BOOKS WILL RECREATE THEMSELVES AROUND A NEW CRYPTO DOLLAR. INTERNATIONAL CRYPTO MARKETS WILL QUICKLY ADOPT THIS NEW STANDARD AND WILL BE EAGER TO GET BACK TO WORK.