US House Committee Unveils Draft Bill on Stablecoins, Marking Potential Crypto Legislation Milestone
The United States House Financial Services Committee has revealed the latest draft of a landmark stablecoin bill, signaling a significant step towards comprehensive crypto legislation in the country. The bill, titled “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem,” was presented by Representative Patrick McHenry, the committee chair, and includes proposals from both Republican and Democratic committee members. The draft bill is set to be discussed during the committee hearing scheduled for June 13.
If approved, the bill would assign the responsibility of establishing requirements for issuing stablecoins to the U.S. Federal Reserve, while also empowering state regulators to oversee the activities of stablecoin-issuing companies. This approach strikes a balance between centralized regulation and state-level supervision, aiming to ensure a well-regulated stablecoin market.
Groundbreaking Bill to Regulate Stablecoins and Empower Federal Watchdog
The proposed legislation not only focuses on determining who can issue stablecoins but also delves into the requirements for payment stablecoins. Once enacted, the bill will offer the first comprehensive guidance on the supervision and enforcement of stablecoin markets in the United States. Additionally, it suggests a two-year moratorium for collateralized stablecoins from the date of implementation.
To enhance regulatory authority, the latest version of the bill grants the federal regulator additional powers compared to its predecessor. This includes the ability to intervene in cases of emergency involving state-regulated issuers. Furthermore, states would have the option to delegate their supervision duties to the federal watchdog, should the need arise.
Previously, an earlier version of the draft bill released on April 24 primarily focused on stablecoin payments, neglecting other crucial aspects of the digital asset market such as custodial service providers and algorithmic stablecoins. However, the latest version takes a more comprehensive approach, addressing various aspects of the digital asset ecosystem and allocating specific powers to state legislatures.
The stablecoin bill’s upcoming discussion on June 13 marks a crucial moment in the United States’ journey towards regulating cryptocurrencies. If approved by the House committee and subsequently passed by the U.S. House of Representatives and the Senate, the bill would set a precedent as the first significant crypto legislation in the country. Market participants and stakeholders eagerly await the outcome of these legislative efforts as they could shape the future of the digital asset landscape in the United States.
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