The draft bill, scheduled for discussion before the House committee on June 13, has the potential to become the pioneering crypto legislation in the United States, if it receives approval.
The United States House Financial Services Committee, under the leadership of Representative Patrick McHenry, has unveiled the third draft of the stablecoin bill. This bipartisan draft incorporates proposals from both Republican and Democratic committee members, signaling a collaborative effort in shaping the legislation.
The draft bill, named “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem,” was initially introduced on June 8. It is slated for deliberation during the forthcoming committee hearing scheduled for June 13.
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The latest iteration of the bill suggests designating the U.S. Federal Reserve as the primary regulatory authority responsible for establishing guidelines governing the issuance of stablecoins. Simultaneously, the bill aims to grant state regulators the authority to supervise the companies involved in issuing these tokens.
The bill delves into regulations concerning the entities authorized to issue stablecoins and outlines the criteria for payment stablecoins. If passed, the bill would establish the first comprehensive framework for overseeing and enforcing stablecoin markets in the United States. Additionally, it introduces a two-year moratorium on collateralized stablecoins from the date of enactment.
Upon receiving approval from the committee and subsequent passage in the U.S. House of Representatives and the Senate, this bill would mark a significant milestone as the first instance of crypto legislation in the United States.
In comparison to the previous version, the latest iteration of the bill confers expanded authority to the federal regulator. This includes the ability to intervene in emergency situations involving state-regulated issuers. Moreover, states would have the option to delegate their supervisory responsibilities to the federal watchdog, if deemed necessary.
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Compared to the prior version released on April 24, the previous draft bill primarily emphasized regulations pertaining to stablecoin payments, overlooking other aspects of digital asset markets like custodial service providers and algorithmic stablecoins. In contrast, the latest version of the bill is more streamlined and also delegates certain powers to state legislatures.
Important:Â This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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