WebsCrypto
  • News
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFTs
  • Markets
  • Business
  • Opinions
  • Press Releases
Facebook X (Twitter) LinkedIn Telegram
WebsCryptoWebsCrypto
  • News
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFTs
  • Markets
  • Business
  • Opinions
  • Press Releases
Bitcoin (BTC) $26,243.03 0.30%Ethereum (ETH) $1,592.26 0.02%BNB (BNB) $213.15 0.73%XRP (XRP) $0.498419 0.85%Cardano (ADA) $0.245194 0.39%Solana (SOL) $18.96 2.32%Dogecoin (DOGE) $0.0606 0.65%Polkadot (DOT) $4.00 1.03%Shiba Inu (SHIB) $0.000007 1.06%Dai (DAI) $0.999636 0.03%TRON (TRX) $0.084931 0.29%Polygon (MATIC) $0.508616 2.54%Avalanche (AVAX) $9.02 0.24%Uniswap (UNI) $4.28 0.32%Litecoin (LTC) $63.73 1.41%
Crypto Prices
WebsCrypto
News

U.S. House Committee Releases Draft Stablecoin Bill Ahead of Congressional Hearings

By Simon LawsonApril 18, 20233 Mins Read
U.S. House Committee Releases Draft Stablecoin Bill Ahead of Congressional Hearings
Share
Facebook Twitter Telegram LinkedIn Reddit Email

The U.S. House of Representatives Financial Services Committee has released a discussion draft of a groundbreaking stablecoin bill ahead of Saturday’s congressional hearing.

The draft, available on the committee’s hearings webpage, represents the first major legislative move on cryptocurrencies in 2023. It creates a definition for paying stablecoin issuers, echoing the term used by former Senator Pat Toomey in his Stablecoin Act of 2022. The bill also calls for a moratorium on new stablecoins backed by other types of tokens, until further research can be performed.

Advertisements

Additionally, it urged federal regulators to study the potential impact of a central bank digital currency issued by the Federal Reserve. The House Financial Services Subcommittee on Financial Technology will hold a hearing on stablecoins on Wednesday, with speakers including Circle’s Dante Disparte, Blockchain Association’s Jake Chervinsky, Columbia University’s Professor Austin Campbell and New York’s Department of Financial Services Adrienne Harris.

The draft bill, called the Stablecoin Stability Act, aims to provide regulatory clarity and oversight to the fast-growing stablecoin market, which has attracted widespread attention and raised concerns about financial stability, consumer protection and national security potential.

Related News:
  • Binance Announces New Stablecoin Amidst Plans to Discontinue BUSD Support
  • Worldcoin Shatters Records in Argentina as Circle Expands USDC Footprint to Chile
  • Ethereum Founder Vitalik Buterin Weighs in on the Rise of RAI and Its Potential Impact on Lido’s Dominance in the LSD Ecosystem

The bill seeks to establish a comprehensive regulatory framework for stablecoins, addressing key areas such as issuer requirements, reserve requirements, consumer protection, and regulatory oversight.

Under the proposed bill, stablecoin issuers would need to obtain a federal charter and be subject to prudential oversight by appropriate federal regulators. The bill also requires stablecoin issuers to maintain a 1:1 reserve of the underlying assets backing the stablecoin and conduct regular audits to ensure transparency and accountability.

In addition, the bill also includes provisions to protect consumers, such as requiring stablecoin issuers to disclose clear and comprehensive information on the risks associated with stablecoins, and providing consumer redress mechanisms in the event of disputes or losses.

One notable aspect of the draft bill is that it calls for a temporary moratorium on new stablecoins backed by other types of tokens. The regulation is intended to address concerns about potential risks and uncertainties associated with stablecoins backed by less stable or less regulated assets such as cryptocurrencies or other tokens.

The bill requires stablecoins to be backed only by fiat currency or deposits held at insured depository institutions until further research can be conducted to assess the risks and benefits of backing other types of assets.

Another important aspect of the draft bill is its focus on examining the potential impact of a central bank digital currency (CBDC) issued by the Federal Reserve. The bill recognizes the growing global interest and momentum in CBDCs and calls for federal regulators to conduct research and analysis of the potential benefits, risks, and implications of a U.S. CBDC.

DISCLAIMER: The information provided by WebsCrypto does not represent any investment suggestion. The articles published on this site only represent personal opinions and have nothing to do with the official position of WebsCrypto.
Altcoin Blockchain CBDC DeFi Mining Regulation SEC Stablecoin
Simon Lawson
  • X (Twitter)

Simon Lawson has been a professional financial reporter for 6 years. He has in-depth research on the crypto industry and will release major crypto news in a timely manner.

Recommended Reading

Markets September 25, 2023

Bonds Surge in Appeal as Bitcoin and S&P 500 Navigate Third Quarter Downturn

Markets September 25, 2023

NFT Market Faces Significant Decline Amidst Broader Crypto Challenges

Business September 24, 2023

Crypto Companies Shift Focus Outside the U.S. Amid Regulatory Pressures

News September 22, 2023

Robert Kiyosaki: Cryptocurrency is the Future, Fiat Money is on the Decline

Markets September 22, 2023

Federal Reserve Holds Steady on Interest Rates; Bitcoin Maintains Support at $27,000

Markets September 22, 2023

Bitcoin and Ethereum Navigate Volatile Waters Ahead of FOMC Decision

The Latest
Markets September 25, 2023

Bonds Surge in Appeal as Bitcoin and S&P 500 Navigate Third Quarter Downturn

Markets September 25, 2023

NFT Market Faces Significant Decline Amidst Broader Crypto Challenges

Business September 24, 2023

Crypto Companies Shift Focus Outside the U.S. Amid Regulatory Pressures

News September 22, 2023

Robert Kiyosaki: Cryptocurrency is the Future, Fiat Money is on the Decline

Markets September 22, 2023

Federal Reserve Holds Steady on Interest Rates; Bitcoin Maintains Support at $27,000

EDITOR’S CHOICE
Ether (ETH) Prices are Trading at 27% Discount to Fair Value, New Research Shows
Robert Kiyosaki: Cryptocurrency is the Future, Fiat Money is on the Decline
Bonds Surge in Appeal as Bitcoin and S&P 500 Navigate Third Quarter Downturn
Crypto Companies Shift Focus Outside the U.S. Amid Regulatory Pressures
News
  • News
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFTs
  • Markets
  • Business
  • Markets
Information
  • Opinions
  • Guides
  • Press Release
  • Sponsored
Price Indexes
  • Market Cap
  • Bitcoin Price
  • Ethereum Price
  • Cardano Price
  • Solana Price
  • Polkadot Price
  • Polygon Price
Services
  • About Us
  • Contact Us
  • Advertise
  • Privacy Policy
  • Terms of Service
WebsCrypto
X (Twitter) Facebook Telegram LinkedIn RSS
© 2023 WebsCrypto

Type above and press Enter to search. Press Esc to cancel.