U.S. Introduces Legislation for Stablecoin Regulation

Senator Bill Hagerty has put forth a revised bill aimed at regulating the stablecoin sector in the United States, with the goal of enhancing transparency and dependability in payment systems that utilize stablecoins.

Bill Hagerty, a U.S. Senator representing Tennessee and a member of the Senate Banking Committee, has outlined a strategy for the legislation intended to create a definitive regulatory framework for the oversight of stablecoin issuers.

This bill builds upon a comparable initiative introduced by Patrick McHenry, Chair of the House Financial Services Committee, in 2023. While Hagerty’s proposal is based on McHenry’s draft, it incorporates several important amendments to enhance clarity and transparency regarding the use of stablecoins in the U.S.

Hagerty asserts that his legislation will establish a robust legal framework for stablecoin issuers, facilitating the secure integration of stablecoins into the U.S. payment system. The bill specifies particular requirements for stablecoin issuers, which include:

• complete transparency of reserves, ensuring users can have confidence in the stability and security of the coins;
• maintaining reserves in highly liquid assets such as government bonds, which significantly mitigates risks for token holders;
• conducting regular audits of reserves by independent auditors to foster trust in issuers and safeguard investors from potential financial losses.

The senator has also suggested clarifying the regulatory bodies responsible for oversight. Under Hagerty’s proposal, stablecoin issuers with a market capitalization below $10 billion would be overseen by state-level financial regulators. In contrast, issuers with a larger market cap would be regulated by the U.S. Office of the Comptroller of the Currency. The senator highlighted that a customized regulatory approach will best foster innovation while ensuring consumer protection.

Hagerty’s bill has been submitted to the U.S. House of Representatives, where discussions are set to continue until November 1.

Changes in regulations in the U.S. concerning cryptocurrencies, along with actions taken by American regulators and lawmakers, frequently influence the broader crypto market. For further insights into how recent local initiatives have impacted the global crypto market in September, refer to CoinsPaid’s special report.

Some U.S. officials express opposition to the introduction of a central bank digital currency (CBDC) in the nation and critique the Securities and Exchange Commission’s (SEC) stance on crypto market regulation.

Сообщение Stablecoin Regulation Bill Proposed in U.S. появились сначала на CoinsPaid Media.