A new draft bill around stablecoins’ framework in United States was unveiled through a House of Representatives documentary prior to a scheduled hearing on April 19, 2023. It’s believed that the draft assigns responsibility of non-bank stablecoin issuers to Federal Reserve, as stated by Cointelegraph.
According to Cointelegraph, insured depository institutions aiming for stablecoins’ issuance would be categorised under necessary federal banking agency supervision, while non-bank platforms would fall under Federal Reserve supervision. Sources suggest that negligence of registration can result in five years of imprisonment, along with a one million dollar worth compensation. Reportedly, platforms based out of United States would need to register to conduct business.
Based on information by Cointelegraph, approval will be sought for individuals responsible for protecting reserves backing stablecoins with US Dollars or Federal Reserve notes, treasury bills, repurchase agreements, and central bank reserve deposits. “There is clearly the need for deep, bi-partisan support for laws that ensure that digital dollars on the internet are safely issued, backed and operated,” Jeremy Allaire, CEO, Circle, tweeted.
Moreover, Cointelegraph noted that the outlined legislation consists of a two-year ban on issuing, creating or developing stablecoins without tangible assets’ support. Reportedly, US Department of Treasury would supervise a study around “endogenously collateralised stablecoins.“ Context of the draft seems to permit US government to develop regulations around stablecoins’ interoperability.
(With insights from Cointelegraph)