The United States House Financial Services Committee recently released the third draft of the new stablecoin bill titled “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem,” presented by Republican chair Patrick McHenry. The draft bill aims at bipartisan legislation and includes proposals from both Republican and Democratic financial services committees. It is expected to be discussed during the upcoming committee hearing on June 13.
The latest version of the bill proposes the Federal Reserve as the key regulator, tasked with formulating requirements for issuing stablecoins while simultaneously offering state regulators powers to oversee the companies issuing the tokens. The legislation is expected to cover aspects, such as who can issue these stablecoins and the requirements of a payment stablecoin. If approved, the bill will offer the first comprehensive guidance on the supervision and enforcement of stablecoin markets, including a two-year moratorium for collateralized stablecoins from the date of enactment.
The bill, if approved by both the U.S. House of Financial Services Committee and the US Senate, would become the first form of crypto legislature in the U.S. The latest version of the bill offers additional powers to the Federal regulator compared to the previous versions, including the power to intervene against state-regulated issuers in cases of emergency. The bill also proposes that states could pass their supervision duties over to the federal watchdog if necessary.
The previous version of the draft bill, issued on April 24, focused more on stablecoin payments, as opposed to overseeing other aspects of digital asset markets, such as custodial service providers and algorithmic stablecoins. The latest version of the bill is more concise while granting certain powers to state legislatures as well.
Despite the benefits of having a clear legislative framework for stablecoins, there are concerns surrounding the possible intervention of federal regulators in the affairs of state-regulated issuers. Offering both federal and state regulators powers to oversee stablecoin issuers can be a double-edged sword, as it can ensure better compliance and enforcement of stablecoin markets, but also lead to potential conflicts and power struggles between the two authorities.
In conclusion, the latest draft of the stablecoin bill brings forth a crucial step towards providing much-needed guidance on how stablecoins should be regulated in the United States. While the bill has its pros and cons, it highlights the increasing importance of cryptassets within the financial ecosystem and sets the stage for a crucial discussion on the future of digital assets.
Source: Cointelegraph
