Members of the US House of Representatives are drafting a new bill to provide a comprehensive regulatory framework for stablecoins in the US. Legislative discussions for these altcoins resumed after the new Congress convened in January, and the House of Representatives Digital Assets, Financial Technology and Participation Subcommittee will hold a hearing on the subject on Wednesday.
New stablecoin bill in the US House of Representatives
Stablecoins such as USD Coin (USDC), Tether (USDT), Binance USD (BUSD), Dai (DAI), True USD (TUSD) offer a comprehensive framework for digital assets for payments whose price is expected to remain constant. is making another attempt to establish a regulatory framework. The House of Representatives Financial Services Committee released a new draft bill of discussion without formal notice on Saturday, in anticipation of a hearing on the issue Wednesday by the committee’s new panel focused on digital assets and financial technology.
The draft bill may not be final, as discussions and debates continue in Washington over the coming weeks and months. Negotiations that stalled shortly before the midterm elections and the collapse of FTX last year due to disagreements between Republicans, Democrats and the Biden administration in Congress have resumed. The Securities and Exchange Commission, which provided technical advice on the matter and recently started investigating stablecoins as security offerings, also had their thumbs up.
For altcoins draftnext important points
Making the Federal Reserve responsible for non-bank stablecoins
The US central bank will approve and regulate non-bank companies such as Circle and Tether that are currently issuing or wishing to issue their own stablecoins in the US. Credit unions and banks that want to issue their own stablecoins can do so with approval from their main financial regulator, the National Credit Union Administration, the Federal Deposit Insurance Corporation, or the Office of the Currency Controller. Failure to register is punishable by up to five years in prison and a $1 million fine. Regardless of where the company is headquartered, any issuer wishing to do business in the US will need to register.
(temporary) ban on new stablecoins without fiat backing
The new bill includes a two-year ban for such altcoins that are not backed by a stable asset. It also directs the Department of the Treasury to conduct a study on such “endogenously supported” stablecoins. Tokens that already exist before the bill becomes law will be passed on to ‘grandfather’.
Let the government set interoperability standards
Banking regulators and the National Institute of Standards and Technology are seeking interoperability between stablecoins for ease of use, including mandatory technical and legal specifications that allow users to exchange and pay between different payment systems without purchasing native stablecoins for each. will have the ability to set standards.
Instructing the Fed to work on the digital dollar
If the bill becomes law, Congress and the President will direct the Federal Reserve to examine the effects of a central bank-issued digital dollar. cryptocoin.comAs you follow, the Fed has already started examining whether to issue a digital dollar. But the bill will mandate certain areas of focus, such as monetary policy, financial stability, and potential impacts on privacy for individuals. Fed leaders have expressed mixed views on a digital dollar, as the long-awaited FedNow real-time payment system launches in July and provides faster payments, similar to a digital currency, but uses more traditional financial infrastructure than a central bank digital currency.
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