Stablecoins should be allowed to voluntarily subject themselves under the regulation of the Securities and Exchange Commission, VanEck Chief Executive Jan van Eck said in a Barron’s commentary.
Van Eck believes stablecoins should be able to register with the SEC, resembling exchange-traded funds. This would allow the regulator to oversee the safekeeping and valuation of the assets.
The chief executive said it is possible that issuers will not choose to avail of the “better designed” regulatory model but this would give the market the ability to determine the value of additional oversight.
Van Eck said treating stablecoins like exchange-traded funds would address issues that the assets could be considered bank accounts in disguise, needing to be helped out financially during crises.
Van Eck also believes tax withholding should not be forced on stablecoins, as most of them do not pay dividends. He noted the need to prepare for the day asset pay interest.
The official noted that the proposals are better than creating regulatory mandates which consider them as banks when they are not.