There are new developments on the US front regarding stablecoins, which became the target of regulatory calls after the Terra USD (UST) collapse. The cryptocurrency bill, which has been on the agenda for a long time in the USA and whose focus is stablecoins, has been postponed to September.
Cryptocurrency bill regulating stablecoins until September
cryptocoin.comAs you follow, the collapse of Terra’s stablecoin, UST, has fueled calls for regulation. One of the countries that took action in this regard was the USA. Lawmakers in the U.S. House Financial Services Committee continued their discussions on the cryptocurrency bill this week. However, plans to vote on legislation that could apply federal regulations to the stablecoin industry for the first time have yielded no results. According to sources on the matter, US lawmakers have delayed consideration of the cryptocurrency bill to regulate stablecoins. The bill will be considered after the August recess of Congress.
Negotiations on a new stablecoin regime between the two houses of the House Financial Service Committee, led by Democratic chair Maxine Waters of California and Republican ranking member Patrick McHenry of North Carolina, were strained towards the end of the week. The bill ultimately failed to garner adequate support. The bill ultimately lacked enough support to warrant a ticking vote this week, according to two sources following the process.
Terra’s collapse has increased the demands and need for regulation
Broadly speaking, the draft legislation included strong, one-to-one dollar reserve requirements, a new licensing regime. It would also introduce anti-money laundering requirements for “payment stablecoins,” a type of cryptocurrency designed to protect a stable value. The committee has not yet published the legislative text. But a source said a draft discussion could start circulating this week.
There is currently no law regulating the cryptocurrency space. The current bill will be the first step to spruce up the growing industry without any regulation. Joe Biden administration officials believe current laws are insufficient to protect investors. Especially after the collapse of Terra USD (UST), regulators’ measures to regulate stablecoins have increased considerably. In the US, it is stated that in a scenario where stablecoins are not controlled, these assets may pose a threat to financial stability.
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