Sun, November 24

U.S House Committee Proposes Draft Stablecoin Law

U.S House Committee Bitcoin News
  • The Republican and Democratic stablecoin bills have been combined into a single draft.
  • A hearing will be held before the entire US House Financial Services Committee today.

House Republicans and Democrats have collaborated on a draft stablecoin law. This has been produced by the House Financial Services Committee in the United States. On Tuesday, a full hearing by the House Financial Services Committee will provide “clarity” on the structure of the digital asset market. And also the regulation of payment stablecoins.

A hearing entitled “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem” will be held before the entire US House Financial Services Committee on June 13th.

More Clarity Over Stablecoins

The Republican and Democratic stablecoin bills have been combined into a single draft by the Financial Services Committee. The proposed stablecoin legislation seeks to regulate stablecoins for payments and other uses.

Primary Federal regulators, who may issue and what must be included in a payment stablecoin, monitoring and enforcement, state-qualified issuers of payment stablecoins, and interoperability are all covered in the law.

If the measure is enacted. It will prohibit the issuance, creation, or origination of any endogenously collateralized stablecoin that does not exist on the date of adoption of this Act for a period of two years.

As a result of the proposed change to the Investment Advisers Act of 1940. Payment stablecoins will no longer be considered “securities.” Stablecoins will be subject to more stringent federal regulation than that of individual states.

Chairman Patrick McHenry thinks this is a big deal since it will finally get crypto regulated in the United States. The views of Democrats on the measure, though, remain unknown. In order to create the first stablecoin regulation, the measure has to pass both the US House and US Senate.

The Digital Asset Market Structure Discussion Draft states that digital assets issued as part of an investment contract are within the purview of the SEC. The CFTC will have authority over the spot market for digital commodities.

Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.