The House Financial Services Committee has released a new version of its stablecoin bill, aimed at regulating payment stablecoins. The bill is a discussion draft that would allow state regulators to supervise stablecoin issuers, with federal regulators playing a primary role by issuing capital and liquidity requirements. The new version includes additional parts such as the treatment of customer assets by firms providing custodial services and the study on endogenously collateralized stablecoins.

Details of the Bill

The bill specifically targets payment stablecoins and would allow state regulators to supervise stablecoin issuers while federal regulators would have a primary role in issuing capital and liquidity requirements. The newer version now includes additional parts such as the treatment of customer assets by firms providing custodial services and the study on endogenously collateralized stablecoins. The bill defines endogenously collateralized stablecoins as any digital asset in which its originator has represented will be converted, redeemed, or repurchased for a fixed amount of monetary value; and that relies solely on the value of another digital asset created or maintained by the same originator to maintain the fixed price.

Future Discussions

The draft will be discussed at an upcoming House Financial Services Committee hearing titled “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem,” on June 13. This new version comes after some bumps in the road between House Democrats and Republicans in that committee over the past year. Both seemed divided on how to regulate stablecoins during a House Financial Services committee last month.

Response

The House Financial Services Committee received feedback from its Democratic members before the new version of the bill was released. House Democrats had criticized the bill, saying that it would weaken customer protections and Federal Reserve oversight. However, the new version of the bill addresses these concerns by including the treatment of customer assets by firms providing custodial services.

The new version of the stablecoin bill aims to regulate payment stablecoins by allowing state regulators to supervise stablecoin issuers, with federal regulators playing a primary role by issuing capital and liquidity requirements. The bill also includes additional parts such as the treatment of customer assets by firms providing custodial services and the study on endogenously collateralized stablecoins. The bill will be discussed at an upcoming House Financial Services Committee hearing.

Blockchain

Articles You May Like

Launchpad.xyz: The Ultimate Platform for Navigating the NFT Market
US Justice Department Investigating Binance for Alleged Sanctions Violations
Luxembourg Competition Regulator Launches Market Study on Web3 and Blockchain-Based Firms
Digital Currency Group Responds to Lawsuit Alleging Fraud by Gemini

Leave a Reply

Your email address will not be published. Required fields are marked *