A stablecoin bill is in the works in the United States Congress, aiming to regulate stablecoins and their issuers.
The US Congress has finally made progress on the regulation of stablecoins as it is set to introduce a new stablecoin bill for all aspects of stablecoin issuance and circulation. Set to be heard on April 19, the bill, if passed, could prove to be a huge forward step for the crypto space in the country. The House of Representatives document repository saw the complete bill being published currently.
The stablecoin bill includes several regulations, which include bringing banking institutions that are stablecoin issuers under the jurisdiction of federal banking agencies. On the other hand, the Federal Reserve would regulate non-banking institutions. Failing to do so could attract prison time and a million-dollar fine. International issuers could also set shop in the United States after appropriate registration with agencies.
The CEO of Circle, Jeremy Allaire, said on his Twitter thread, “It’s an extraordinary moment for the future of the dollar in the world, and the future of currency on the internet. There is clearly the need for deep, bi-partisan support for laws that ensure that digital dollars on the internet are safely issued, backed and operated.” He stressed the need for regulation of this space under the framework of US prudential law.
The stablecoin bill, if passed, would also require the issuers to possess technical expertise on the subject and have enough reserves for the issued stablecoins in US dollars, treasury bills, and central bank reserve deposits. The new bill could help the sector in the US to a large extent with its regulatory attributes.