A better version of previous draft<\/strong><\/p>\n\n\n\nThe bill includes many of the same provisions as a previous version that was negotiated last year. This includes a requirement for payment stablecoin issuers to be approved and regulated by either a federal payment stablecoin regulator or a registered state-qualified payment stablecoin issuer.<\/p>\n\n\n\n
To be approved as an issuer, stablecoin providers must meet reserve capital requirements and provide monthly reports on their reserve portfolios. The bill also clarifies that stablecoins are not securities and should not be regulated by the SEC.<\/p>\n\n\n\n
However, the new version of the bill gives state regulators a more prominent role in the market, even though most states do not have stablecoin regulatory frameworks in place. The bill allows state regulatory agencies more flexibility in establishing requirements for approval of stablecoin issuers as long as they meet a basic standard outlined in the federal legislation.<\/p>\n\n\n\n
The bill also softens the previous language that required payment stablecoin issuers to redeem stablecoins for cash within one day. The new language instead requires issuers to establish procedures for the timely redemption of outstanding payment stablecoins.<\/p>\n\n\n\n
Additionally, the bill provides states with more time to investigate and resolve potential noncompliance issues with approved issuers.<\/p>\n\n\n\n
According to an anonymous Republican committee aide who briefed reporters on the bill, states will enforce their own laws, and the Federal Reserve will have backstop authority for depository institutions, credit unions, and their subsidiaries.<\/p>\n\n\n\n
Republican committee members created the latest version of the bill, which they consider a “starting point” for discussions about stablecoin regulation with House Democrats, the Senate, and the White House in the coming months. As of now, no Democrats have expressed support for the bill. It is unclear when or if the bill will be formally introduced in the House, and committee members hope to receive feedback and engage in productive conversations before deciding on next steps.<\/p>\n\n\n\n
The stable digital assets market is currently worth over $180 billion and operates without a clear legislative framework. As a result, regulators are in a “turf war,” with the Commodities Futures Trading Commission aiming to regulate stablecoins as commodities and the Securities and Exchange Commission aiming to regulate them as securities.<\/p>\n\n\n\n
About the author<\/strong><\/p>\n\n\n\nAnjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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