Issuers of ‘stablecoins’ attach their value to traditional currencies such as the US dollar.
Washington:
Issuers of so-called “stablecoins,” virtual currencies whose value is pegged to traditional currencies, will face bank-like regulation and scrutiny under a draft bill from senior lawmakers in the US. The US House of Representatives, according to a source familiar with the matter.
Senior Democrats and Republicans on the House Financial Services Committee are close to finalizing a draft that would require stablecoin issuers to adhere to capital adequacy, liquidity, and safety standards. supervision, similar to what banks have faced.
According to the source, the draft law would allow non-banks to issue stablecoins as long as they comply with stricter scrutiny but would prohibit companies from issuing their own stablecoins.
Issuers of stablecoins pegged their value to traditional currencies like the US dollar, intending digital currencies to have low volatility.
But the steep fallout and stress experienced by some major stablecoin issuers in recent months has prompted greater scrutiny from regulators, who worry consumers could be hurt. harmful. The source said the bill would also require issuers to hold reliable and sufficient reserves.
The measure faces an uncertain future in Congress. The source said the support of senior members of both parties suggested it could pass the House of Representatives, but the Senate was not involved in the negotiations. There are only a few months left until the US midterm elections in November, when policymaking is expected to pause.
Spokespersons for Representative Maxine Waters, the Democrat chairing the committee, and Representative Patrick McHenry, its ranking Republican, did not respond to requests for comment.
The U.S. Treasury Department has been calling on Congress to develop legislation that sets out new rules for stablecoins since citing a report in November urging Congress to authorize bank-like oversight of the new financial product. .
