US stablecoin regulation bill to be delayed until September 2022

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2022-07-27 01:36:45

The law addressing the potential risks of stablecoins will be considered by lawmakers in the US House of Representatives until September this year.

According to a report from the Wall Street Journal, members of the US House of Representatives may delay voting on a stablecoin bill until September 2022 after failing to complete the draft in time for the Committee meeting. on 07/27. Unresolved issues in the bill include custodial wallet regulations from the Treasury Department and concerns from the U.S. Securities and Exchange Commission (SEC).

The bill was drafted by Representatives Maxine Waters and Patrick McHenry with the key proposal of allowing banks to issue their own stablecoins and placing non-bank issuers under Federal Reserve oversight. state (Fed).

A bill for general regulation of stablecoins is expected to be submitted to the US Congress in the future

Much of the legislation’s specifics have not been made public, and the details of the proposed framework have prompted groups of supervisors and banking lobbyists to warn that the bill may fail to protect the banking system. financial system from risk. However, lawmakers are said to be close to reaching a final agreement on the bill late last week.

Even so, Treasury Secretary Janet Yellen is said to want to work with the US government to respond to the bill. Neither has publicly weighed in on the proposed legislation, but Yellen has previously called for regulatory clarity in the crypto space around stablecoins, citing concerns about the demise of LUNA/ UST before. In addition, President Joe Biden’s pro-crypto executive order in March 2022 also aims to address similar gaps in regulatory oversight for crypto assets.

To date, lawmakers have delayed or been unable to come to an agreement on many of the bills that propose to regulate stablecoins in the US. In office in February 2022, Congressman Josh Gottheimer introduced a “Stablecoin Protection and Improvement Bill” that would allow the Federal Deposit Insurance Corporation (FIDC) to support stablecoins in a similar way to money. send fiat.

There is also a bipartisan bill introduced by Senator Cynthia Lummis in the Senate in June 2022, which also proposes to regulate stablecoins issued by financial institutions but could be delayed for consideration. until 2023.

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