Rohan Grey, assistant professor at Willamette Law, talks about the STABLE Act, which would require stable coin issuers to obtain a banking charter, require approval from the Federal Reserve and require issuers to have FDIC insurance. In this episode, Grey, an advisor to the bill, discusses:

  • how the past history of financial innovation and events that have posed systemic risks necessitates the STABLE Act
  • how he, not being a staff member of Congress, became involved in the bill 
  • how the bill would prevent stablecoin issuers from committing crimes that banks have perpetrated by requiring them to become banks
  • why he believes open source smart contracts enforcing rules and public audit-able blockchains are not a fundamentally new way to prevent the type of events that pose systemic risks that the STABLE Act aims to prevent
  • why existing regulatory and licensing regimes are insufficient
  • how he would answer people from countries like Argentina who have had their currency devalued by their government the STABLE Act, and who might say this bill exposes them to a different type of risk
  • how much the rollout of Facebook’s Diem, as opposed to existing stablecoins such as Tether, USDC or Dai, was a motivation for this bill
  • whether, by focusing narrowly on systemic risk, this bill could squash crypto and fintech innovation that could help the un- and under-banked
  • whether he sees any path forward for this bill to be passed

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Episode links:

Rohan Grey:


Introduction of bill:

Implications of the bill for running an Ethereum node:

Rohan Grey and Jeremy Allaire interviews on The Block Live:

Unchained interview with acting Comptroller of the Currency Brian Brooks:

Link to the Crypto News Recap: