The US House of Representatives Drafts Bill to Regulate Stablecoins
The US House of Representatives is working on a new bill to regulate stablecoins in the country. The bill is being drafted by two senior members of the Financial Services Committee and aims to establish state-wise regulations for stablecoins. Both Republicans and Democrats agree that there should not be a “race to the bottom” when it comes to regulating fiat-backed crypto assets. The bill grants authority over stablecoins to the US Federal Reserve, rather than the SEC or another regulatory body. The vote on the bill has been postponed to the end of July.
Key Points:
- The bill aims to regulate stablecoins in the US.
- Republicans and Democrats agree on the need for regulations, but not a “race to the bottom”.
- The US Federal Reserve would have authority over stablecoin regulations.
- The vote on the bill has been rescheduled for July 26th.
- If passed, the bill would give the CFTC greater oversight over the crypto industry.
Hot Take:
The US House of Representatives’ efforts to draft a bill to regulate stablecoins is a positive development for the crypto industry. The agreement between Republicans and Democrats shows a willingness to work together and address the need for regulations. Granting authority to the US Federal Reserve could provide a more comprehensive and consistent approach to stablecoin regulations. However, the bill still needs to pass the vote and receive approval from the Senate and the Biden administration. If successful, it could lead to greater oversight by the CFTC, which may be seen as a favorable alternative to the SEC for the crypto industry.
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