VanEck’s head of digital assets research, Matthew Sigel, recently criticized the US Treasury Department’s views on digital assets, particularly stablecoins. Sigel claimed that the department’s stance was based on outdated academic views, especially a single study by Gary Gorton and Jeffery Zhang. He argued that the study promoted a biased preference for centralized financial systems and failed to acknowledge the potential stability of private currencies when regulated properly.
According to Sigel, historical examples from other countries show that private currencies can be just as reliable as government-issued money when the right checks and balances are in place. He criticized the Treasury’s reliance on US-centric analysis in its report, stating that it failed to consider global precedents that demonstrate the secure operation of stablecoins under proper regulatory frameworks around the world.
Sigel also took issue with the comparison between 19th-century wildcat banknotes and modern stablecoins, arguing that stablecoins operate in a vastly different and more stable manner today. He highlighted the real-time data and transparent transactions of modern stablecoins, which make them far removed from the chaotic environments of the past. Sigel called for a more global perspective on stablecoins, urging regulators to consider international experiences and adopt a more inclusive view that reflects the realities of the interconnected, digital global economy.
The Treasury’s report did acknowledge the potential benefits of tokenization and representing real assets on the blockchain, suggesting that stablecoins and tokenization could reshape the financial landscape. However, it also raised concerns about stability risks associated with stablecoins and warned about the growing reliance on Treasuries in the absence of regulation. Sigel countered these arguments by emphasizing the secure operation of stablecoins globally under appropriate regulations and regulatory frameworks.
In conclusion, Sigel called for broader, global scrutiny of stablecoins and private digital currencies. He emphasized the need to move beyond US-specific concerns and perspectives, drawing on international financial experiences to understand the full potential of stablecoins in the modern digital economy. Sigel urged US regulators to adopt a more inclusive view that reflects the interconnected nature of the global economy and the secure operation of stablecoins under proper regulatory frameworks worldwide.
