Bitrabo Editorial
The US House Financial Services Committee has unveiled a revised draft of a stablecoin bill that resulted from a bipartisan collaboration between Democratic and Republican lawmakers. The proposed legislation seeks to strike a balance between national regulatory standards and state-level control by advocating for the Federal Reserve to outline requirements for issuing stablecoins while retaining oversight jurisdiction for state regulators. However, the proposed bill still requires further discussions and approvals from both the House and Senate before becoming law.
Expanded Authority for the Federal Reserve
The new legislative proposal provides expanded authority to the Federal Reserve, including the capacity to intervene against state-regulated issuers during emergency situations. It also acknowledges the role of state regulators in supervising stablecoin-issuing companies, with a provision that allows states to delegate their supervisory duties to federal regulators, should they wish.
This stablecoin bill is a turning point toward bipartisan negotiation on crypto regulation and could establish the inaugural US regulations for stablecoins if passed by both chambers of Congress. Stablecoins are crucial for facilitating trade and providing a buffer against volatility as digital tokens are tied to stable assets like the dollar.
The updated draft removes previous clauses calling for research into a digital dollar, a concept that met with Republican criticism. The Federal Reserve has yet to confirm whether a central bank digital currency (CBDC) is appropriate for the US.
The Future of Stablecoin Regulation
The committee hearing to review the bill is scheduled on June 13. A comprehensive examination by the House and Senate is still needed before this becomes law. Creating this bipartisan bill represents a leap forward in the journey toward effective and balanced stablecoin regulation in the United States.
Meanwhile, the global crypto market continues to thrive amid regulatory scrutiny, with a market value above $1.1 trillion over the past 24 hours.
Featured image from Unsplash, Chart from TradingView