US Congressman Warren Davidson, a Bitcoin proponent, tweeted on Tuesday, “Short the Dollar.” This has been in response to the Twitter account of Forbes Crypto asking the community to sum up cryptocurrencies in 2020 in three words.
Davidson replied with shorting the US dollar and the hashtag “Sound Money,” referring to Bitcoin.
Short the dollar #SoundMoney
— Warren Davidson (@WarrenDavidson) December 8, 2020
According to him, Bitcoin is a “great store of value,” which he views “like digital gold versus a true currency.” But he doesn’t own any personally. Davidson’s reply triggered some, Rohan Grey being one of them who wrote,
“Another brilliant monetary insight from one of the Republicans who opposes the #STABLEAct.”
Grey, an assistant professor at Willamette University College of Law, has recently been in the limelight helping draft the controversial Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act.
For those in the industry concerned about the STABLE Act, know that the Congressional legislative session ends in 2 weeks. It won’t pass anytime because it is a partisan bill, has no Senate companion and there isn’t enough time for a hearing/markup/floor vote.
— Ron Hammond (@RonwHammond) December 2, 2020
Grey also worked with Rep. Rashida Tlaib on the Public Banking Act draft, which was introduced in October, and a COVID relief plan to invest in the digital wallet.
The latest draft STABLE Act requires any stablecoin issuer to obtain a banking charter and approval from the Federal Reserve and be FDIC-insured. This bill further holds the node operators and network upon which these fiat-based cryptos will operate liable.
There’s a simple solution to this: don’t validate blocks that contain deposit contracts.
— Rohan Grey (@rohangrey) December 3, 2020
According to him, it’s about the systemic risk that stablecoins pose, and as they become larger, they are no different than any other big financial institutions. For him, even if an instrument is issued on a decentralized network, if it is “trying to walk and talk like money, and therefore carries a systemic risk, it should be regulated like money.” Grey said,
“I hold the view…that decentralized networks are not sort of a crowd where there’s nobody liable—that there are actors you can point to that operate and govern and make decisions related to key parts of that infrastructure.”