"Massad Slams STABLE Act: Weak Standards Leave Stablecoins Vulnerable"

The former Chair of the Commodity Futures Trading Commission (CFTC), Timothy Massad, has criticized the STABLE Act, highlighting its weak standards and lack of guidelines. In a recent statement, Massad argued that the act fails to provide adequate regulatory clarity for stablecoin issuers, leaving the market vulnerable to potential risks.

Massad's primary concerns revolve around the act's insufficient state standards, which he believes are not robust enough to handle all stablecoin-related matters. He also pointed out the absence of a detailed federal supervision process for state issuers, raising questions about the act's effectiveness in ensuring market stability. Furthermore, Massad emphasized the lack of guidelines on what would happen in case a stablecoin user loses their funds, a critical aspect that the current draft of the STABLE Act does not address.

Massad's critique comes amidst growing concerns about the regulatory landscape for cryptocurrencies in the United States. Representative Stephen Lynch, a former CFTC head, has also expressed his disapproval of the STABLE Act, citing the lack of regulatory guidelines and the inappropriate distribution of authority in trade control. Lynch believes that the crypto community is not headed in the right direction, with no accurate crypto operating regulations and no controlling mechanism by the SEC to optimize crypto trade.

Lynch also criticized Trump's pro-crypto policy, arguing that it lacks a filter and aims to create an unwavering ecosystem of trade. He believes that this approach could lead to two reckless outcomes: $TRUMP and $MELINA. Additionally, Lynch thinks that Trump has a limited visionary outcry when it comes to leveraging a conducive environment to support regulated crypto transactions.

The recent trade obligations and tariffs imposed on Canada, Mexico, and China have also had an impact on the crypto market. Traditional stocks were hit hard, and the effects of the tariff war were felt in the crypto trade as well. However, the crypto community remains optimistic about the potential for improved clarity of crypto trade under the Trump administration.

In a positive development, a US House Subcommittee hearing on February 11 provided some clarity on how digital assets transactions would take place. Jonathan Jachym, who spoke first, emphasized the need for setting ground rules for more centralized intermediaries and advocated for giving the CFTC spot market authority to conduct regulatory activities freely. He suggested that the CFTC could then "regulate centralized and intermediaries, and secondary market transactions