Proposing a new bill to regulate stablecoins in the US…Details here
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Answer Proposing a new bill to regulate stablecoins in the US…Details here
Legislators and decision makers in the United States of America are still trying to regulate the crypto market by enacting laws that protect all parties while allowing for creativity and innovation.
Recently published by CNBC article That the US legislator, “Josh Gotheimer” from New Jersey, and his team have revealed draft legislation that establishes legal definitions about stable cryptocurrencies.
However, this draft has been criticized.
Collaboration and utilization of the crypto space:
The first draft of the New Jersey Rep, released on February 14, proposes introducing definitions of digital stablecoins.
According to the document, a stablecoin can be considered eligible if it can be exchanged for US dollars at a 1:1 ratio.Read:A real test of the ICP project after the launch of the first non-fungible “ICPunk NFT” tokens on its network
These “qualifying” stablecoins could also be created, the draft says, by a federally backed bank.
The bank must agree to store 100% of the US dollar, US debt or other asset approved by the US financial regulator as the Office of the Comptroller of the Currency, an appropriate cash collateral to which the stablecoins are pegged.
Gottheimer added that the United States should not stifle innovation in the cryptocurrency market.
Treasury Department Nelly Liang, who is leading efforts to regulate the cryptocurrency market, supported Gottheimer’s plan when she appeared before the House Financial Services Committee recently.
Criticism of the proposed draft:
According to Gottheimer, he and his team have collaborated with the Treasury and the Blockchain Association, as well as with several crypto companies, to discuss the proposed regulations in the bill.
Critics have criticized the draft because they believe that stablecoins are vulnerable to criminal use, manipulation, and similar things.
Stable cryptocurrencies like USDT and USDC have gained increasing popularity among crypto users recently.
Its believers say that stablecoins combine the cheapness and high speed of cryptocurrencies with the stability of fiat currencies like the dollar, the euro, etc…Read:A protocol hack that facilitates the launch of new digital currencies on “SushiSwap” and the theft of more than 3 million dollars
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