Summary of Article
- The US House Financial Services Committee has released a new draft of the stablecoin bill proposed by its chair, Representative Patrick McHenry.
- The bill proposes that the Federal Reserve should be responsible for formulating regulations for issuing stablecoins and states should have powers to oversee these companies.
- If approved, this will become the first comprehensive guidance on supervision and enforcement of stablecoin markets in the United States.
Overview of Stablecoin Bill Draft
The latest draft of the bill entitled, The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem, was first proposed on June 8 and is expected to be discussed during the upcoming committee hearing on June 13. This bipartisan bill includes specific proposals from both Republican and Democratic members. It proposes that U.S. Federal Reserve should be responsible for formulating requirements for issuing stablecoins and state regulators should have powers to oversee companies issuing such tokens.
Requirements for Payment Stablecoins
The draft also discusses legislation regarding who can issue stablecoins and what are requirements for a payment stablecoin. If passed, it would become the first crypto legislation in US with provision of two-year moratorium for collateralized stablecoins from date of enactment which provides some additional authority to federal regulator as compared to previous version. It gives states power to pass their supervision duties to Federal watchdog if necessary as well as intervene against state-regulated issuers in case of emergency.