Stablecoins could bolster U.S. dollar: former House Speaker

The 2024 U.S. Presidential race is heating up, and cryptocurrency policy is emerging as a key issue. With the Biden administration reportedly planning to attend a crypto policy roundtable and former President Trump expressing support for keeping crypto companies in the U.S., former House Speaker Paul Ryan has now joined the debate.

In a June 13 Wall Street Journal article Ryan — who served as the top Republican in the House under Presidents Obama and Trump before retiring in 2019, is urging lawmakers to consider creating a suitable crypto regulatory framework:

A sound, predictable regulatory framework for stablecoins has bipartisan support in Congress and would help dramatically expand the use of digital dollars at a critical time. In an election year, given all the ugly politics to come, we sure could use a win.

Ryan argued that embracing stablecoins could make U.S. debt more attractive in international markets and prevent a potentially disastrous failed debt auction. He wrote:

If other countries are successful at bolstering their currencies’ influence while dumping Treasury debt, the U.S. will need to find new ways to make the dollar more attractive. Dollar-backed stablecoins are one answer.

Ryan also noted that China has already embraced digital currency technology through its e-yuan, with HSBC China becoming the first foreign bank to offer e-yuan banking services. Ryan emphasized the importance of the U.S. not sitting idly as China and Saudi Arabia, traditionally large purchasers of American debt, seek alternatives outside the dollar system:

Promoting dollar-backed stablecoins would follow a well-trodden path and offer clear near-term benefits. There would be an immediate, durable increase in demand for U.S. debt, which would reduce the risk of a failed debt auction and an attendant crisis. Unlike China’s digital financial infrastructure, dollar-backed stablecoins issued on public, permissionless blockchains come packaged with the deeply American values of freedom and openness.

The former Speaker called for a bipartisan effort in Congress to craft a regulatory framework for stablecoins, suggesting it could be a unifying issue in an election year likely to be marked by divisive politics. He concluded:

In an election year, given all the ugly politics to come, we sure could use a win.

As the 2024 election approaches, it’s clear that cryptocurrency policy will be a significant point of debate and a potential area for legislative action. With influential figures like Paul Ryan weighing in, the stage is set for stablecoins and digital currency to play a central role in the political and economic discourse.

As recently reported by Readwrite, presidential candidate Donald Trump has continuously pledged ever-increasing crypto support during his campaign. Biden, on the other hand, is reportedly considering accepting crypto campaign donations after recently deciding to strike down a bipartisan push to repeal pro-crypto bill SAB 121.

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