America's financial markets are the envy of the world because they scale and adapt to meet investor demands. Like our markets, the CFTC's and SEC's regulatory frameworks must also evolve and modernize to accommodate the needs of our market participants.
Ryan, who had worked for seven years at the Ethereum Foundation (EF), Ethereum's de facto governing body, suggested that Ethereum could be on the cusp of an era-defining shift. Since its founding in 2014, the foundation had prioritized technical upgrades and had avoided centralizing power while its user base was growing, but Ethereum had now grown up, and the cryptocurrency world around it had grown up, too.
The proposed rule establishes broad principles to guide the determination of whether state-level stablecoin regulatory regimes are 'substantially similar' to the federal framework, allowing smaller issuers to remain under state supervision.