A Senator in the US, known for his positive comments for Bitcoin and altcoins, has sent a new message on stablecoin regulations. Pat Toomey shared the legislative message specifically for the regulation of stablecoins pegged to an asset. Here are the details…
Pat Toomey made a final push for these altcoins
Crypto ally US Senator Pat Toomey used one of his last days in office to send a final legislative message on the regulation of stablecoins. The final phase of the weakening Congress did not produce any crypto surprises. Industry lobbyists backed out. But Toomey decided to do something about cryptoassets. Toomey decided to introduce a bill as a guide for next year’s lawmakers. The retired senator used the following statements in a statement that will likely be the last as the last day of the session draws to a close:
I hope this framework paves the way for my colleagues to pass the law that protects customer funds without hindering innovation next year.
The retired senator’s law, which went into effect Wednesday, will protect the privacy of stablecoin transactions. Thus, the Office of the Currency Supervisory (OCC) will be used as the licensing agency for companies issuing stablecoins. It will allow non-bank entities to issue tokens and enable non-bidding stablecoin issuers to net their reserves. So people wouldn’t have to worry about interest, securities laws. As an example of the largest stablecoins, you can check out the image below:
Toomey has previously spoken for the stablecoin law
Also, the law Toomey pointed out would require cryptocurrencies designed to maintain a stable value by being tied to an asset like the dollar, to be fully backed by reserves. It will approve to continue the existing state-based control. However, this is Toomey’s second stablecoin act this year. As we reported as Kriptokoin.com, the first one did not yield much results.
The new legislation aims to keep the US Federal Reserve (FED) away from this sector. It also points to the Fed’s mandate to create a digital dollar in the future. It highlights the possibility of a potential conflict of interest in the event of such a mandate. Toomey intends to avoid such a conflict of interest situation.
If Toomey’s colleagues had won the Senate majority in the November election, things might have been different. The latest bill could have had a greater impact. However, his party (Republicans) remains in the minority. Senator Tim Scott is set to replace Toomey as a senior member of the Senate Banking Committee. This shift appears to leave a vacuum for cryptocurrency advocacy in the Senate. Because Toomey was a staunch supporter of cryptocurrencies and Blockchain space. But Scott’s views remain unclear.
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