THELOGICALINDIAN - The proposed bill would acquaint a new able appellation for assertive stablecoins that are redeemable onetoone for US dollars
U.S. Representative Josh Gottheimer (D-NJ) has appear an aboriginal abstract of a bill aimed at ambience bright definitions about U.S. dollar-backed stablecoins.
Josh Gottheimer Introduces Draft Bill on Stablecoins
The United States could be affective a footfall afterpiece to acclimation stablecoins.
According to a Tuesday report appear by Politico, New Jersey Democrat Rep. Josh Gottheimer has appear abstract legislation that would set bright definitions surrounding adjustment of the fast-growing anatomy of cryptocurrency.
The proposed bill would acquaint a new “qualified” appellation for stablecoins that can be adored on appeal on a one-to-one base for U.S. dollars. These able stablecoins would alone be issued by banks or non-bank institutions that amuse assertive regulations, including rules set by the Office of the Comptroller of the Currency.
Issuers of able stablecoins would accept to advance at atomic 100% abetment in assets assets, which would booty the anatomy of U.S. dollars or added assets the OCC deems adapted banknote equivalents. In best instances, these accommodate acutely liquid, concise U.S. dollar-denominated debt instruments like U.S. Treasury securities.
In an account from beforehand this month, Gottheimer told Politico that the key motive abaft the proposed bill was “harnessing the addition while ensuring assurance and acumen for investors.” He added:
“Certainty’s the key to leadership, and I’m afraid that appropriate now you’ve got Bermuda and the Bahamas and France and added places cartoon investors and currencies because we accept not acted with the alertness that we should.”
One of the greatest concerns regulators accept apropos stablecoins and stablecoin issuers is the affection of their abetment and the achievability of “bank runs” that could abuse the adherence of the broader banking system. Under Gottheimer’s bill, stablecoin issuers would either accept to access coffer charters or authority their affluence in absolute accounts with adapted banks. This would decidedly abate the risks for both the users and the arrangement as a accomplished but additionally access absorption and absolute the antagonism aural the space.
Gottheimer reportedly told CNBC that Nellie Liang, undersecretary of the Treasury who’s arch authoritative efforts on the stablecoins, accurate his plan back she appeared afore the House Financial Services Committee aftermost week. However, several added Representatives, including Republican Tom Emmer and Democrat Gregory Meeks, opposed the President’s Working Group proposal, which, agnate to Gottheimer’s abstract legislation, approved to absolute stablecoin arising to banks.
The House Financial Services Committee is accepted to adjudge on stablecoin legislation in the abutting brace of months. However, amid aggressive bills and geopolitical tensions surrounding Russia and Ukraine, it could booty appreciably best for such a accommodation to materialize.
