The bill puts the Federal Reserve in charge of non-bank issuers of stablecoins, such as crypto companies Tether and Circle, issuers of Tether (USDT) and USD Coin (USDC).
The US Congress will resubmit a bill to regulate stablecoins. The project puts Federal Reserve by non-bank issuers of stablecoins, such as crypto companies Tether and Circle, issuers of Tether (USDT) and USD Coin (USDC), Cointelegraph reported.
Stablecoins are cryptocurrencies that try to offer price stability by being backed by specific assets (dollar, euro) or by using algorithms to adjust their supply based on demand. However, the latter are the ones that have brought the greatest problems.
Stablecoins under regulation in the US
According to the document, Insured depository institutions wishing to issue stablecoins would be under the supervision of the appropriate federal banking agency, while non-bank institutions would be subject to supervision by the Federal Reserve. Failure to register could lead to up to five years in prison and a $1 million fine. Issuers from outside the United States would have to apply for registration to do business in the country.
Factors for approval include the applicant’s ability to maintain reserves backing the stablecoins with US dollars or Federal Reserve Notes, T-bills with a maturity of 90 days or less, repurchase agreements with a maturity of 7 or less days backed by Treasury bills with a maturity of 90 days or less, as well as central bank reserve deposits.
Besides, Issuers must demonstrate technical expertise and established governance, as well as the benefits of delivering financial inclusion and innovation through stablecoins.
The draft also allows the US government to set standards for interoperability between stablecoins. It also determines that Congress and the White House would support a study by the Federal Reserve on the issuance of a digital dollar.
Source: Ambito
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