Republican lawmakers on the House Financial Services Committee have presented a discussion draft of legislation aimed at regulating stablecoin issuers. The draft, referred to as a “starting point,” is intended to revive negotiations with Democrats on stablecoin regulation. Last y...
Republican lawmakers on the House Financial Services Committee have presented a discussion draft of legislation aimed at regulating stablecoin issuers. The draft, referred to as a “starting point,” is intended to revive negotiations with Democrats on stablecoin regulation. Last year, House Democrats negotiated a bill that would subject stablecoin issuers to Federal Reserve oversight, with a view to developing reserve requirements that offer security to customers in case of insolvency.
Republicans bill to confirm that stablecoins are not securities
The House Financial Services Committee has expressed concerns about the lack of regulation in the crypto space and is seeking to impose order on the industry through the discussion bill. However, the latest version of the proposal has no Democratic support.
The GOP aides have described the bill as a “starting point” for conversations with House Democrats, the Senate, and the White House on stablecoin regulation. As negotiations proceed, it will be interesting to see whether the two sides can come to an agreement on how to regulate stablecoin issuers and how to ensure that customers are protected in the event of insolvency.