Bipartisan Stablecoin Bill: Impact on US Crypto Landscape, Regulation, and Innovation Pros & Cons

The US House Financial Services Committee released a draft stablecoin bill, aiming to bring clarity on the digital asset market structure and regulation of payment stablecoins. The bill includes detailing primary federal regulators, regulations on issuing payment stablecoins, supervision, enforcement, and interoperability. The proposed legislation gives federal agencies more authority and oversight of stablecoins, as a first step toward regulating cryptocurrency in the US.

Circle Ditches US Treasury Bonds for USDC: A Wise Move amid Debt Ceiling Showdown?

In response to potential market turbulence due to the U.S. debt ceiling showdown, Circle Internet Financial has divested from U.S. Treasury bonds, backing its USD Coin (USDC) with overnight repurchase agreements instead. This strategic move aims to protect the USDC stablecoin from potential bond market disruptions as lawmakers scramble to avoid a government default. The effectiveness of this strategy remains uncertain.