US Lawmaker Blasts Government Stablecoin Payments as 'Tax-Evasion Economy'
During a House Financial Services Committee hearing on Thursday, Rep. Brad Sherman (D-CA) strongly opposed the idea of the federal government making payments in stablecoins, arguing it would 'sanctify an alternative to the U.S. dollar' designed to facilitate tax evasion. NCUA Chairman Kyle Hauptman had proposed stablecoins for faster tax refunds and stimulus payments, citing 24/7 settlement capabilities. Sherman warned that sophisticated lawyers would exploit loopholes around stablecoin yields, urging strict regulations. The hearing also covered the GENIUS Act implementation, with FDIC Chairman Travis Hill announcing upcoming customer identification requirements for stablecoin issuers. Additionally, Comptroller Jonathan Gould faced questions about World Liberty Financial's national trust-bank charter application, with Rep. Gregory Meeks challenging his independence. The developments come as crypto firms like Kraken gain Fed master account access, amid political tensions over regulatory approvals.
Key facts
- Rep. Sherman called stablecoin payments a 'tax-evasion economy' threat.
- NCUA Chairman Hauptman advocated stablecoins for faster government disbursements.
- FDIC to propose customer ID rules for stablecoin issuers soon.
- Comptroller Gould defended World Liberty Financial charter scrutiny.
- Kraken gained limited Fed master account access amid political debate.