Multiple competing bills could be introduced to Congress in the coming weeks.
Key Takeaways
Competing bills concerning the regulation of stablecoins and their reserves could be introduced in Congress this month.
Representative Josh Gottheimer produced an earlier draft of the bill, similarly aimed at regulating reserves, this February.
The aim of the bill is related to the President’s Working Group on Financial Markets (PWG) and past Tether controversies.
A bill regulating stablecoins within the U.S. could be introduced as early as this month, according to a report from Blockworks.
Bills Could Be Introduced This MonthAn anonymous source has reportedly told Blockworks that competing versions of a U.S. stablecoin regulation bill could be introduced by the end of this month.
U.S. Representative Josh Gottheimer produced an early draft of the bill in February. That draft proposed a “qualified” definition that would apply to stablecoins issued by banks and other institutions.
The aim of the bill seems to be related to a report on stablecoins from the President’s Working Group on Financial Markets (PWG). Among other things, that workgroup suggested that stablecoin issuers should be regulated by the Federal Deposit Insurance Corporation (FDIC), just as banks are currently regulated.
Though there is reportedly some disagreement over the guidance contained within the bills, it is said that the bills’ content will generally concern stablecoin reserves.
Bill Could Avoid Tether-Like ProblemsCurrently, stablecoins can be issued by any institution or group with very little regulatory oversight from the United States.
Tether, which issues the USDT stablecoin, has been scrutinized harshly by regulators. In Oct. 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 covering up missing funds.
Ron Hammond of the Blockchain Association told Blockworks that the upcoming bill likely aims to “prevent another situation like Tether” by requiring audits of stablecoins issuers and by clarifying which 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 U.S. government. The Federal Reserve produced a CBDC report in January.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other cryptocurrencies.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
NFT Express: Your on-ramp to the world of NFTs
At Tatum, we’ve already made it super easy to create your own NFTs on multiple blockchains without having to learn Solidity or create your own smart contracts. Anyone can deploy…
Congress Hearing Bodes Well for Stablecoin Issuers
News
Feb. 9, 2022
The committee mostly argued that stablecoin issuers should not have to become insured depository institutions. Committee Discusses Stablecoin Report Stablecoin issuers may escape the Biden Administration’s recommendation of limiting distribution…
U.S. Congressman Introduces Bill to Limit Fed’s CBDC Powers
News
Jan. 12, 2022
U.S. Representative Tom Emmer (R-MN) has introduced a bill prohibiting the Federal Reserve from issuing its own central bank digital currency (CBDC) directly to individuals. The Congressman warned of the…
U.S. Congress Reportedly Set for Hearing on Bitcoin’s Carbon Foo…
News
Jan. 6, 2022
U.S. Congress may soon have its first hearing on the environmental impact of Proof-of-Work crypto mining. Congress May Examine Bitcoin’s Environmental Impact According to a report by The Block, the…
