A draft bill addressing the regulation of stablecoins in the United States is set to undergo discussion in the House Committee on June 13. If approved by both the House and the Senate, this legislation would mark the first comprehensive crypto regulation in the country. The bill, titled "The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem," has been released by the Republican chair of the House Financial Services Committee, Patrick McHenry.
The latest version of the bill aims to foster bipartisan support by incorporating proposals from both Republican and Democratic financial services committees. It suggests that the Federal Reserve should serve as the primary regulator responsible for establishing requirements for the issuance of stablecoins. However, it also grants state regulators the authority to oversee the companies issuing these tokens.
In addition to addressing the issuance of stablecoins, the bill discusses the criteria for entities permitted to issue stablecoins and defines the requirements for payment stablecoins. If passed, this legislation would provide much-needed clarity for the supervision and enforcement of stablecoin markets. Moreover, it suggests implementing a two-year moratorium on collateralized stablecoins starting from the date of enactment.
The bill's latest version expands the powers of the Federal regulator compared to the previous draft. It empowers the Federal regulator to intervene in emergency situations involving state-regulated issuers. Conversely, states could choose to delegate their oversight responsibilities to the federal watchdog if they deem it necessary.
The earlier version of the draft bill, released on April 24, primarily focused on regulating stablecoin payments. However, the updated version has become more concise while also addressing other aspects of digital asset markets, including custodial service providers and algorithmic stablecoins. It strikes a balance by granting certain powers to both federal and state legislatures.
If the bill receives approval from the House Financial Services Committee and the US Senate, it would represent a significant milestone as the first comprehensive crypto legislation in the United States.
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