US Discusses Legal Framework for Stablecoins

The new stablecoin bill has been submitted to the US House of Representatives.

Members of the US House of Representatives want to provide a comprehensive legal framework for stablecoin projects. The opinion that the SEC contributed to the draft law prepared by the members came to the fore. The draft, released by the House Financial Services Committee, is expected to be discussed at the session to be held on April 19. It is stated that the published stablecoin bill will take its final form after discussion and negotiations. After this step, it will be seen what attitude the Republicans and Democrats in Congress will follow. The highlights of the current draft are as follows:

• The Fed will approve and regulate stablecoin issuers.
• Issuers offering services in the US will have to register.
• Those who break the rules will be punished with up to five years in prison and a $1 million fine.
• Stablecoin projects that do not have treasury reserves for fiat money will be temporarily banned.
• If the Fed issues a CBDC, Congress and the President will have oversight powers.

A stablecoin is a type of cryptocurrency that aims to maintain a fixed value relative to a particular asset or basket of assets. This could be fiat currencies like the US dollar, commodities like gold, or other cryptocurrencies. Stablecoin’s goal is to provide a more stable and reliable store of value compared to other cryptocurrencies. Stablecoins have gained popularity in recent years due to their potential to form a bridge between the traditional financial system and the cryptocurrency world. They can be used for a variety of purposes, including a medium of exchange, a store of value, and a way to move money across borders.