Congressman McHenry Disappointed by No Deal on Stablecoins Bill
Last month, the Republican chair of the House Financial Services Committee introduced a new version of the primary U.S. legislative proposal aimed at regulating stablecoins. However, the bill reached a no deal in the US Congress, much to the disappointment of Congressman Patrick McHenry.
- Failure to reach a consensus: McHenry expressed his disappointment due to the Democrats’ unwillingness to compromise during negotiations.
- Insufficient votes: There was commotion in the House Financial Services Committee as there were not enough votes to pass the bill.
- Key provisions: The proposed stablecoin bill designates the U.S. Federal Reserve as the key regulator and grants state regulators powers to oversee issuing companies.
- Requirements for issuing stablecoins: The bill mandates reserves backed with various assets such as the U.S. currency, insured demand deposits, Treasury bills, and central bank reserve deposits.
- Mitigating stablecoin collapses: Issuers must submit monthly certifications and examination reports by a registered public accounting firm to prevent stablecoin collapses.
Hot Take: The no deal on the stablecoins bill highlights the challenges faced in establishing U.S. regulation of cryptocurrencies. Bipartisan discussions and compromises are crucial in order to move forward with effective regulations.
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