Following the conclusion of the riveting congressional hearing on April 18 that included SEC Chair Gary Gensler, the U.S. House of Financial Services Committee is holding a hearing on the regulation of stablecoins today. The hearing follows the unveiling of a new draft bill in the House to provide a legislative framework for stablecoins.
Congress Undecided On Stablecoin Bill
The U.S. Congress weighed its opinions on the new stablecoin bill, with few deeming it to be revolutionary while representatives like Stephen Lynch and Maxine Waters requested further amendments and feedback from the community.
Read More: Major Setback For Bitcoin Miners As Intel Ends Chip Support
The proposed bill which intends to put a greater emphasis on stablecoins and stimulate research into the producing a digital dollar would obligate stablecoin issuers to hold reserves supporting their stablecoins on at least a one-to-one basis.
While speaking on stablecoin development and driving growth, Blockchain Association’s Chief Policy Officer, Jake Chervinsky, was quoted as saying:
Given the right policies, stablecoins can revolutionize the payment system & reinforce the dominance of the U.S. Dollar at a time when foreign adversaries like China are seeking to undermine its status as the global reserve currency.
Crypto Stalwarts Push Stablecoin Regulation
Austin Campbell who’s the current Managing Partner at Zero Knowledge Consulting emphasized that if the United States embraces the innovation of stablecoins, then as the usage of blockchains and crypto increases, the reach of the dollar would also grow simultaneously.
Additionally, he highlighted the fact that if the reserves for stablecoins, when appropriately regulated, provide a pool of additional capital purchasing treasury debt or lending to the American financial system that did not previously exist, thereby allowing stablecoins to draw in new foreign capital to fund the government.
The stablecoin draft bill is reported to place the Federal Reserve Board in control of stablecoin issuers that are not financial institutions. However, insured depository institutions and insured credit unions that desire to issue stablecoins would be overseen by appropriate federal banking regulators or the National Credit Union Administration. A fine of up to $1 million USD and up to five years in prison might be imposed on those who release stablecoins without the authorities’ consent.
Also Read: EU Debates MiCA Crypto Law Before Vote; Here’s Implementation Timeline
The post Just-In: U.S. Congress Erupts In Heated Debate Over Stablecoin Regulation appeared first on CoinGape.
- Mobile app
- Telegram Channel
- Telegram Group
- Binance Referral Link
- Bitmex Referral Link
- (Recommended For Leverage) ByBit Referral Link
- Buy Ledger Nano at discounted price
- Buy Cool Wallets at discounted price
Don't forget to share your review/suggestions for the android app.
All In One Crypto App is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by All In One Crypto App or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risks