The US House Financial Services Committee recently released a draft stablecoin bill, showcasing bipartisanship between House Republicans and Democrats. The full Committee hearing, scheduled for June 13, aims to bring clarity on the digital asset market structure and regulation of payment stablecoins.
This latest draft combines concepts from both Republican and Democrat financial services committees. Key aspects of the bill include detailing primary federal regulators, regulations on issuing payment stablecoins, supervision and enforcement, state-qualified payment stablecoin issuers, and interoperability. If passed, the bill would impose a two-year moratorium on issuing, creating, or originating any endogenously collateralized stablecoin not in existence on the date of enactment of the Act. Moreover, as an amendment to the Investment Advisers Act of 1940, the bill establishes that payment stablecoins are not considered “securities.”
The proposed legislation would give federal agencies more authority and oversight of stablecoins, as opposed to state regulators. Financial Services Committee Chairman Patrick McHenry views the bill as the first step toward regulating cryptocurrency in the US. However, it remains unknown what opinion other Democrats hold on the matter. To establish the first stablecoin regulation, the bill must pass both the US House and the US Senate.
As stated in the Digital Asset Market Structure Discussion Draft, the SEC would have jurisdiction over digital assets offered as part of an investment contract, while the CFTC would oversee the digital commodity spot market.
Witnesses for the hearing include Circle CEO Jeremy Allaire, who is responsible for issuing USDC; Steptoe & Johnson LLP partner Coy Garrison; Ava Labs CEO Emin Gün Sirer; and National Futures Association President Thomas Sexton III.
The move toward clarity on stablecoin regulation is just one aspect of the constantly evolving digital asset landscape. As innovative projects and technologies continue to emerge, it’s crucial for investors to stay informed and adapt to the regulatory environment accordingly. It will be interesting to see how the draft bill develops and further progress is made on the road to US stablecoin regulation.
Source: Coingape
