A new bill proposal on stablecoins is being considered by House Democrats, according to a source familiar with the matter.
U.S. Congressional Democrats Working on Their Own Stablecoin Bill
A new bill proposal on stablecoins is being considered by House Democrats, according to a source familiar with the matter. The bill, which has not been officially introduced yet, would differ from the previous bipartisan effort led by Representatives Patrick McHenry and Maxine Waters in 2022. The McHenry-Waters bill aimed to create a clear regulatory framework for payment stablecoins, which are digital assets pegged to the U.S. dollar or other fiat currencies.
The new bill proposal would reportedly include more consumer protection measures and give the Federal Reserve more authority over stablecoin issuers. It would also define payment stablecoins as a specific asset type and impose stricter rules on how and where stablecoin reserves are held. The bill proposal comes amid growing interest and concern over the role of stablecoins in the crypto ecosystem and the broader financial system.
Stablecoins are seen as a key innovation for facilitating fast and cheap cross-border payments, as well as enabling access to decentralized finance applications. However, critics say they also pose potential risks to financial stability, consumer protection, and monetary policy if they are not properly regulated and supervised. The new bill proposal reflects the House Democrats' intention to address these challenges and ensure that stablecoins are safe and compliant with existing laws.
