Partisan Split Over Stablecoins Highlighted at Banking Hearing

Partisan divisions over stablecoins became more apparent during a Senate Banking Committee hearing Tuesday -- with a key Republican touting the possible benefits, while Democrats argued the tokens pose risks to consumers and the economy.

Massachusetts Democrat Elizabeth Warren Elizabeth Warren expressed concern that the “talk” around stablecoins doesn’t match up to reality, noting that the value of cryptocurrencies like Tether can fluctuate even if they’re supposed to be pegged one-to-one to the dollar. By Tether’s own report only about 10% of the assets backing its stablecoin are real dollars--but Warren warned that even that number isn’t verified by an audited financial statement or a government regulator.