The draft law is scheduled to be discussed by the House committee on June 13 and, if passed, may mark the beginning of crypto legislation in the US.
The third iteration of a bicameral stablecoin bill put out by Representative Patrick McHenry has been made public by the US House Financial Services Committee. In the proposed legislation, titled “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem,” the U.S. Federal Reserve is identified as the principal regulator in charge of establishing the specifications for the issuance of stablecoins. Additionally, it gives state regulators the power to control the businesses that issue the tokens.
Republican and Democratic committee members each made specific suggestions that are included in the most recent version of the measure. It discusses laws governing stablecoin issuance and lays out specifications for payment stablecoins. If passed, this legislation would offer detailed instructions on monitoring and enforcing stablecoin marketplaces in the US.
The proposed two-year embargo on collateralized stablecoins from the date of enactment is one noteworthy part of the law. This would give time for a more thorough investigation and comprehension of the possible risks connected to such stablecoins.
The bill would be the first major section of crypto law in the United States if it is approved by the committee and moves through the House of Representatives and Senate. In comparison to the previous revision, the most recent version of the bill also gives the federal regulator more power.
This includes the authority to step in when state-regulated issuers are in urgent need of assistance, as well as the choice for states to temporarily transfer their oversight responsibilities to the federal watchdog.
Overall, this draft bill seeks to ensure consumer protection, address possible dangers related to these digital assets, and provide clarity and regulatory control to the stablecoin ecosystem.