Rep. Sherman warns government stablecoin payments would fuel tax evasion

Rep. Brad Sherman, a leading crypto critic in the U.S. Congress, has pushed back against a proposal from federal regulators to use stablecoins for government payments such as tax refunds and disaster relief, calling it one of the worst ideas, Decrypt reported. Sherman argued that if the government were to pay the public in stablecoins, it would officially endorse a shadowy tool meant to replace the U.S. dollar. He claimed that stablecoins are essentially an alternative designed to facilitate a tax-evasion economy. Sherman also warned that lawyers at major law firms are seeking loopholes to bypass regulations on stablecoin interest payments and urged regulators to establish thorough rules.