New stablecoin bill drafted proposed to enhance US regulatory supervision. The chairman of the Financial Services Committee in the U.S. House of Representatives, who is affiliated with the Republican Party, has unveiled a fresh version of the primary legislative proposal aimed at regulating stablecoins.
New Stablecoin Bill Drafted Proposed To Enhance U.S. Regulatory Supervision
The Financial Services Committee’s Republican chairman in the U.S. House of Representatives has released a revised draft of the primary legislative proposal concerning stablecoin regulation.
This updated version incorporates certain positions put forth by Democratic lawmakers, which will be further discussed during a committee hearing scheduled for June 13. If the bill is introduced and approved by both chambers of Congress, it will establish the initial set of regulations for stablecoins in the United States.
The new draft no longer includes a previous section that called for an examination of the advantages of a digital dollar. This idea has sparked division, with Republicans criticizing it, despite the Federal Reserve’s claim that it remains neutral on whether a central bank digital currency (CBDC) is warranted for the country.
The revised draft mandates that the Fed establish requirements for issuing stablecoins, while still allowing state regulators to oversee the companies issuing these tokens. It grants the Fed additional powers, including the ability to intervene in emergencies with state-regulated issuers.
States can also transfer their regulatory responsibilities to federal regulators. Furthermore, the updated draft removes the earlier section that called for a study on the merits of a digital dollar. A committee spokesperson stated that the new draft aims to merge bipartisan positions and incorporate the perspectives of Republican committee members.
Representative Patrick McHenry, the committee’s chairman, has prioritized stablecoin legislation since assuming his role last year. Despite complaints from Democrats about Republicans altering the bill without their input, Chairman McHenry has continued his efforts. House Democrats are also developing their own version of a long-awaited stablecoin bill, but their perspectives demonstrate a significant divergence from the parallel Republican endeavor.
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