US House committee releases new stablecoin bill draft

US House Committee Releases New Stablecoin Bill Draft

The US House Financial Services Committee has released a new draft bill that seeks to provide a legal framework for the issuance and use of stablecoins. The bill, titled “Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act,” sets out rules and regulations for the issuance and use of stablecoins and seeks to protect consumers from potential risks.

The bill seeks to ensure that all stablecoin issuers are subject to the same regulatory standards as traditional financial institutions. It also requires that all stablecoins be backed by a reserve of assets, such as fiat currency, to ensure their stability. Additionally, the bill requires that stablecoin issuers obtain a license from the Federal Reserve before they can issue their stablecoins.

The bill also seeks to protect consumers from potential risks associated with the use of stablecoins. It requires that all stablecoin issuers provide consumers with clear and understandable information about the risks associated with their use. Additionally, the bill requires that all stablecoin issuers have adequate consumer protection measures in place.

The bill has been welcomed by many in the cryptocurrency industry, as it provides a much-needed legal framework for the issuance and use of stablecoins. It is expected that the bill will be debated and voted on in the US House of Representatives in the near future.

STABLE Act

The STABLE Act seeks to provide a legal framework for the issuance and use of stablecoins. It requires that stablecoin issuers obtain a bank charter and obtain approval from the Federal Reserve before they can issue a stablecoin. The bill also requires issuers to provide full disclosure of the risks associated with stablecoins and to maintain sufficient reserves to back the tokens.

Additionally, the bill seeks to protect consumers from potential risks by requiring issuers to maintain a reserve of assets that is equal to or greater than the value of the stablecoin.