• Katherine Dowling, General Counsel and Chief Compliance Officer at the crypto index fund provider Bitwise Asset Management, predicted that US Congress will move to regulate stablecoins this year.
• This shift in US politics is expected to have an impact on the regulation of the crypto industry and its different sectors.
• The infamous collapse of the FTX exchange serves as a real-world example of what can happen when there is no regulation, and having companies onshore and subject to clear regulation would make all the difference.

Katherine Dowling, General Counsel and Chief Compliance Officer at the crypto index fund provider Bitwise Asset Management, believes that US Congress will move to regulate stablecoins this year, as the first step towards the crypto industry regulation. The shift in US politics and the recent election of California Republican Kevin McCarthy as the new House of Representatives speaker is expected to have an impact on the regulation of the crypto industry and its different sectors. The 118th United States Congress, which is the current meeting of the legislative branch of the federal government, composed of the Senate and the House of Representatives, convened on January 3, 2023, and Dowling predicts that this could lead to renewed interest in stablecoin legislation.

The collapse of the FTX exchange serves as a real-world example of what can happen when there is no regulation, and has highlighted the importance of having companies onshore and subject to clear regulations. Dowling believes that this will be beneficial for the crypto industry, as it will provide more clarity and security for investors. In addition, she suggests that there could be more regulations on the types of assets that can be used as collateral for stablecoins, such as the need for a minimum level of liquidity.

The US government is not the only one looking to get involved in the crypto industry. Dowling notes that other countries, such as Singapore, have also begun to take an interest in the space and are looking to create a regulatory framework in order to protect investors. She believes that this could be beneficial for the industry, as it will create more trust and confidence in the market.

Ultimately, it is clear that the regulation of the crypto industry is an important topic that needs to be addressed. The recent collapse of the FTX exchange has highlighted the need for more regulations, and it is likely that the US Congress will move to regulate stablecoins this year. This could be beneficial for the industry, as it will provide more clarity and security for investors.