To provide clarity and give the Fed authority, the US House has released a stablecoin bill.
A full House Financial Services Committee meeting brings a stablecoin bill and a greater understanding of the digital asset ecosystem in the US.
A draft stablecoin bill has been issued by the US House Financial Services Committee with backing by both House Republicans and Democrats. Tuesday’s Full Financial Services Committee hearing intends to provide “clarity” with regard to the organization of the digital asset market and the regulations regarding payment stablecoins.
Clarification On The Digital Asset Ecosystem From The US House
A full hearing of the US House Financial Services Committee entitled “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem” is scheduled for June 13.
A third draft stablecoin bill that combines ideas from the Republican and Democratic financial services committees has been released by the Financial Services Committee. The draft stablecoin bill seeks to regulate stablecoins used for payments as well as other things.
“The term primary Federal payment stablecoin regulators” refers to the National Credit Union Administration, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Comptroller of the Currency.
The law includes information on the key Federal regulators, standards for payment stablecoins, who can issue them, supervision and enforcement, state-qualified issuers of payment stablecoins, and interoperability.
If the bill is approved, a two-year moratorium will be imposed, making it illegal to issue, create, or originate an endogenously collateralized stablecoin that was not already in existence when this Act was passed.
Payment stablecoins won’t be considered “securities” under the amendment to the Investment Advisers Act of 1940. Additionally, compared to state regulators, federal agencies will have more control and oversight over stablecoins.
According to Chairman Patrick McHenry, the bill marks the first step in the US regulating cryptocurrencies. It’s still unclear, though, what Democrats think of the proposal. To establish the first stablecoin regulation, the bill must be approved by both the US House and US Senate.
Clarity Regarding CFTC’s And SEC’s Jurisdiction Over Cryptocurrencies
The SEC has jurisdiction over digital assets sold as a component of an investment contract, according to the Digital Asset Market Structure Discussion Draft. The digital commodity spot market will be governed by the CFTC.
CEO of USDC-issuer Circle Jeremy Allaire, partner at Steptoe & Johnson LLP Coy Garrison, CEO of Ava Labs Emin Gün Sirer, and president of the National Futures Association Thomas Sexton III are among the witnesses at the hearing.