Representative Patrick McHenry, the chairman of the U.S. House Financial Services Committee, has released the third version of the stablecoin legislation titled “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem.”
This latest version of the bill, which incorporates specific suggestions from bipartisan committee members, was published on June 8, 2023, and is expected to be a topic of discussion during the upcoming committee hearing scheduled for June 13, 2023.
The bill will establish comprehensive guidance on the operation and regulation of stablecoin marketplaces. It addresses issues pertaining to the entities authorized to issue stablecoins and the requirements for payment of stablecoins.
The previous draft of the legislation, reportedly released on April 24, 2023, primarily focused on regulating stablecoin payments and did not address other aspects of the digital asset markets, such as custodial service providers and algorithmic stablecoins.
In contrast, the latest version of the law is more precise and empowers state legislators with specific authority. It designates the U.S. Federal Reserve as the primary authority responsible for establishing guidelines for the issuance of stablecoins. It also empowers the Federal Regulator with the ability to take emergency action against issuers that are regulated by state authorities. States would also have the option to transfer their oversight responsibilities to the federal monitor if necessary.
Additionally, the bill proposes a two-year moratorium on collateralized stablecoins from the date of enactment.
Once approved by the committee and passed by the U.S. House of Representatives and Senate, this bill would become the nation’s first formal legislation concerning cryptocurrencies. Its introduction signifies a significant step towards providing clarity and regulation in the rapidly evolving digital asset ecosystem.
The committee hearing is scheduled to hold on June 13, 2023. It will be witnessed by stakeholders in the industry such as Mr. Emin Sirer, the CEO and founder of Ava Labs, Mr. Jeremy Allaire, CEO and co-founder of Circle, Mr. Coy Garrison, partner at Steptoe & Johnson LLP, and Mr. Thomas Sexton III, president and CEO of National Futures Association.
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