Former chairman of the United States Commodity Futures Trading Commission (CFTC), Timothy Massad highlighted the importance of the government’s focus on the stablecoin ecosystem in an interview with CNBC.

On July 24, Massad told a CNBC interviewer that he sees stable coins as a bridge between “the crypto world and the real world”, and that governments should not view them as a disappearing fad.

The former chairman said he is concerned that regulators are not properly addressing the risks of stablecoins; Instead, they are left out of the conversation because of the perception that they don’t work.

“I sympathize with what many people in government are saying […] We’re not convinced of the use case here; We don’t really see what is of value in the real world,” he said, “but sometimes it takes time to really find it.”

Massad has been a vocal advocate for crypto regulation and more harmonious cooperation between the CFTC and the US Securities and Exchange Commission (SEC) when it comes to digital assets.

On July 24, the US Government Accountability Office (GAO) – a national congressional oversight agency – released a report on the use of blockchain in finance, echoing the spirit of inter-agency collaboration on crypto regulations.

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In the same CNBC interview, he highlighted that stablecoins could hold the potential to create faster payment mechanisms in the US and that if the US were to develop stablecoins, it could inspire other countries to do the same.

“I think if we address the risks, and they are significant, competition from stablecoins can be useful again.”

In addition to faster payment systems, he argued that stablecoins are already prompting banks to reflect on their current operating systems and how they can be improved.

Massad has previously criticized the US for not creating a central bank digital currency (CBDC) fast enough.

These comments come as regulators in the US continue to consider regulations for the crypto industry, including several bills that will affect the issuance and use of stablecoins.

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