- Drafts to regulate stablecoins and their reserves could be presented to Congress this month.
- Representative Josh Gottheimer this February drafted an earlier draft of the bill that aims to regulate reserves in a similar way.
- The intent of the bill relates to the President’s Financial Markets Working Group (PWG) and past Tether discussions.
According to a report from Blockchain, a bill regulating stablecoins in the US could be submitted earlier this month. As Kriptokoin.com, we have compiled the details for you, let’s examine the subject together…
Drafts on the regulation of stable cryptocurrencies can be submitted this month!
An anonymous source reports that the US stablecoin regulation bill could be submitted by the end of this month. U.S. Representative Josh Gottheimer prepared an early draft of the bill in February. This draft proposed a “qualified” definition that would apply to stablecoins issued by banks and other institutions.
The intent of the bill appears to be related to a report on stablecoins from the President’s Financial Markets Working Group (PWG). Among other things, this working group suggests that stablecoin issuers should be regulated by the Federal Deposit Insurance Corporation (FDIC), just as banks are currently regulated. While some disagreements are reported about the guidance contained in the bills, the content of the bills is said to be of interest to stablecoin reserves in general
What is the purpose of these regulations?
Currently, stablecoins can be issued by any institution or group from the United States with little regulatory oversight. Tether, which issues the USDT stablecoin, has been harshly scrutinized by regulators. In October 2021, Tether was fined by the CFTC for misrepresenting its reserves. Tether and its sister company Bitfinex were targeted by the New York Attorney General’s Office in 2019 for allegedly closing missing funds.
Blockchain Association’s Ron Hammond said the upcoming bill is likely aimed at “preventing another situation like Tether” by requiring oversight of stablecoin issuers and explaining what assets can be used in stablecoin reserves. The bill could also pave the way for the development of a central bank digital currency (CBDC) elsewhere in the US government. The Federal Reserve released a CBDC report in January.
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