Representative Patrick McHenry, who chairs the committee, just introduced the newest version.
On June 13th, a committee hearing will be held to consider the most recent measure officially. The prior law targeted stablecoin transactions in particular. The new version of the proposal expands on the definition of a payment stablecoin and specifies who may issue such a coin.
If passed as written, the measure would provide the most extensive legal framework in the US for stablecoins.
The most recent law also seeks to make the Federal Reserve the primary authority responsible for formulating and monitoring the conditions for issuing stablecoins. According to the new legislation, state officials will also monitor the firms issuing the tokens. The proposed legislation states:
“Stablecoins are subject to varying degrees of oversight depending on where you live. In general, authorities have determined that stablecoin issuers are involved in money transmission operations and have mandated that issuers get a licence, undergo periodic exams, and take particular measures to protect consumers. Depending on the reserve assets a stablecoin uses and the types of transactions made, several different regulatory bodies may have authority over stablecoins and the activities that use them.”
Compared to earlier versions, this one grants the federal regulator more power. This includes more ability to take legal action against issuers regulated by the state when there is cause to do so.
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