- The US House Financial Services Committee has released the third draft of a stablecoin bill presented by its chair, Representative Patrick McHenry.
- The bill proposes the U.S. Federal Reserve as the key regulator tasked with formulating requirements for issuing stablecoins and grants state regulators powers to oversee companies issuing tokens.
- If approved, it will be the first comprehensive guidance on supervision and enforcement of stablecoin markets in the United States.
The United States House Financial Services Committee has released the third draft of a stablecoin bill presented by its chair, Representative Patrick McHenry. The new draft titled ‘The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem’ is set to go before the committee for discussion on June 13 and, if approved, could become the first example of crypto legislation in the United States.
Proposals in The Bill
The latest draft of the bill proposes that U.S. Federal Reserve will be responsible for formulating requirements for issuing stablecoins while state regulators are given powers to oversee companies issuing tokens. It further discusses legislation regarding who can issue stablecoins and what should be included in payment-related stablecoins. A two-year moratorium from date of enactment has been proposed for collateralized stablecoins too. Additionally, some additional authority has been granted to federal regulator compared to previous version which includes power to intervene against state-regulated issuers in cases of emergency or when states pass their supervision duties to federal watchdog if necessary.
Previous Version vs Latest Version
In comparison with previous version issued on April 24th, which was focused mainly on payments related tostablecoins rather than overseeing other aspects like custodial service providers or algorithmic ones; this latest version is more concise and grants specific powers to state legislatures as well.