PANews reported on February 27 that according to CoinDesk, the U.S. Senate Banking Committee held its first digital assets panel hearing, focusing on stablecoin legislation and the role of Congress in future crypto regulation.

The hearing was chaired by crypto-friendly Senator Cynthia Lummis, who said Congress is close to launching a bipartisan stablecoin and market structure legislative framework, but stablecoin regulation will be prioritized. Former CFTC Chairman Timothy Massad suggested that Congress should postpone market structure legislation for several years and make adjustments after the current regulatory framework of the SEC and CFTC is implemented.

In addition, Senator Mark Warner expressed concerns about the KYC issue of stablecoins, pointing out that although the issuer performs KYC, stablecoins are not verified when they are transferred between wallets and may be used for illegal activities. Lightspark Chief Legal Officer Jai Massari responded that blockchain can provide tamper-proof on-chain records and suggested further development of tracking tools to balance privacy and compliance.