Scott Beck, chief executive officer of United Texas Bank, called on members of the state’s blockchain working group to recommend policy for leaving stablecoins to banks rather than crypto firms.
Speaking before the Texas Work Group on Blockchain Matters in Austin on Friday, Beck suggested limiting the issuance of U.S. dollar-backed stablecoins to licensed banks rather than issuers like Circle. The United Texas Bank CEO cited a November report from the President’s Working Group on Financial Markets, in which the group said stablecoin issuers
Circle’s USDC dollar-pegged stablecoin is supposedly 100% backed by cash or cash equivalents, including bank deposits, Treasury bills, or commercial paper. The stablecoin issuer announced in March that financial institution BNY Mellon would be responsible for custodying its USDC reserves — more than 52 billion coins are in circulation as of the time of publication.
The Texas Work Group on Blockchain Matters was officially formed in September 2021 following the passage of House Bill 1576. According to the group’s website, its mission includes developing a framework “for the expansion of the blockchain industry in Texas and recommend policies and state investments in connection with blockchain technology.”