THELOGICALINDIAN - A angle from Congressman Tom Emmer apropos dividendpaying stablecoins
Congressman Tom Emmer (R-MN) has drafted a bill that could accord the U.S. SEC bound administration over assertive stablecoins.
Bill Concerns Dividend-Paying Stablecoins
A new abstract bill from Emmer would admission the U.S. Securities and Exchange Commission administration over stablecoins that pay out dividends, according to letters from The Block.
Specifically, one byword in the bill would acquiesce “stablecoins that accommodate a allotment component” to annals with the SEC.
Dividend-paying stablecoins are authentic in the bill as distributing “all or allotment of the assets fabricated from the advance of the assets abetment the stablecoin to the holders of the stablecoin.”
The bill appears to affair stablecoins with assets congenital into their agreement (such as UST), but not third-party lending and staking platforms that would pay out assets on absolute stablecoins.
If the bill succeeds, the SEC would be appropriate to actualize a new framework for acclimation these stablecoins. Those rules would behest requirements about the assets abetment stablecoins, namely the types of assets acceptable and rules for storage.
Participation in the authoritative affairs would be voluntary, not mandatory, for stablecoin firms. Emmer has previously pushed for more open crypto legislation, authoritative this bend unsurprising.
SEC Turns Toward Stablecoins
The SEC is acclaimed for acclimation cryptocurrencies, abnormally those awash in antecedent bread offerings, those that serve as advance contracts, and those that contrarily authorize as securities.
However, there are signs that the regulator will about-face its absorption to stablecoins in the future. Chairman Gary Gensler has fabricated again statements implying that the asset chic could abatement beneath the SEC’s scope, advertence that stablecoins “may able-bodied be securities” aftermost year.
Furthermore, in November 2021, the Balance and Exchange Commission alternate in the President’s Working Group. The accumulation analogously begin that stablecoins may be advised securities. That award that acutely gives some ascendancy to the SEC.
SEC Commissioner Hester Peirce, meanwhile, has suggested that stablecoins can fit into acceptable frameworks such as banking—concluding that “stablecoin abhorrence is unwarranted.”
Disclosure: At the time of writing, the columnist of this allotment endemic BTC, ETH, and added cryptocurrencies.
