US House committee releases new stablecoin bill draft

The United States House Financial Services Committee, chaired by Representative Patrick McHenry, has issued the third version of the stablecoin bill. This latest iteration is bipartisan, featuring proposals from both Republican and Democratic members of the committee.

The draft bill, entitled “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem,” was initially introduced on June 8 and is anticipated to be deliberated during the upcoming committee hearing on June 13.

The most recent iteration of the bill puts forth the U.S. Federal Reserve as the primary regulator responsible for setting up standards for the issuance of stablecoins. Additionally, it intends to give state regulators authority to monitor the organizations that are issuing the tokens.

The legislation in the bill further examines who is allowed to issue stablecoins and the conditions for a payment stablecoin. If it is accepted, this bill will be the first comprehensive instruction on the monitoring and implementation of stablecoin markets in the United States. It also suggests a two-year suspension for collateralized stablecoins from the date of passing.

Should the bill be approved by the committee and passed by both the U.S. House of Representatives and Senate, it would be the first instance of crypto legislation in the United States.

Stablecoins are seen as the answer to the banking issues faced by the crypto industry, according to an executive.

The newest iteration of the regulation grants the federal regulator more authority than its predecessor. This includes the ability to intervene against state-regulated issuers in times of crisis, as well as the right for states to delegate their supervision responsibilities to the federal regulator if necessary.

The earlier iteration of the draft bill, issued on April 24, concentrated on stablecoin payments instead of regulating other components of digital asset markets, for instance custodial service providers and algorithmic stablecoins. The most recent version of the bill is more succinct and allows state legislatures a particular degree of authority.

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