Bitwise’s Matt Hougan Challenges Stablecoin Comparisons to 1830s Free-Banking Era
Matt Hougan, Chief Investment Officer at Bitwise Asset Management, has dismissed comparisons between stablecoins and the free-banking era of the 1830s as misleading. In a post on X, Hougan argued that such analogies distort policy debates and fail to account for modern technological and regulatory advancements. "The free-banking era started 188 years ago," he wrote. "Letters moved on horseback and Samuel Morse was still tinkering with the telegraph in the lab."
Hougan acknowledged the utility of historical parallels but insisted they must be reasonable. Lawmakers are currently evaluating stablecoin regulation, with critics warning of systemic risks. Hougan contends these concerns are overstated, rooted in outdated comparisons that ignore today's financial infrastructure.
The free-banking era, which spanned roughly 1837 to 1863 in the U.S., was characterized by minimal federal oversight and frequent bank failures—a far cry from today's digital currency frameworks. Stablecoin proponents argue modern blockchain technology and transparency mechanisms RENDER such comparisons obsolete.