- The House Financial Services Committee has introduced a new draft bill overseeing stablecoins.
- This bill signifies a crucial move towards bipartisan negotiation in US crypto regulation.
- The bill proposes that the Fed establish stablecoin issuance rules while maintaining state regulatory oversight.
In a decisive move, the Republican chair of the House Financial Services Committee has put forth a fresh draft for the leading US legislative proposal concerning the oversight of stablecoins. Interestingly, the draft incorporates aspects of the Democratic lawmakers’ positions.
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The bill, still in its draft phase, was posted on Thursday and is scheduled for further discussion in a committee hearing on June 13. This move is seen as a potential step forward in bipartisan negotiations on legislation many are convinced could provide the easiest avenue towards the US regulation of cryptocurrencies.
Serving to reconcile the two parties’ positions, the significantly shortened draft comes with additional points from Republican committee members. The current version stipulates that the Federal Reserve lay down the guidelines for issuing stablecoins. However, the task of overseeing the companies issuing the tokens still lies with state regulators.
This new draft has given the Federal Reserve certain additional powers, including the ability to intervene in emergency situations against state-regulated issuers. States have also been given the option to transfer their supervisory duties to a federal watchdog.
The bill’s narrow focus and its past bipartisan support are seen as the key strengths of the current effort. However, it remains unclear what the Democrats’ stance on the latest version is.
The bill, if introduced and passed by both chambers of Congress, would establish the first US regulations for stablecoins – tokens tied to steady assets like the dollar. These are extensively used in crypto markets for trading in and out of more volatile coins. The latest draft has removed an earlier section that called for research on the merits of a digital dollar, an idea which has sparked controversy recently.
Despite the ongoing turmoil in the financial system, the future of Stablecoin seems promising. The introduction of this bipartisan bill is a testament to the growing recognition of cryptocurrencies and the need for regulatory frameworks. It presents a positive shift towards the integration of digital currencies into the financial landscape.
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