- In the third draft of the stablecoin bill, the House Financial Services Committee has tried to combine ideas pitched by Republicans as well as Democrats.
It seems the politicians of America are ready to embrace crypto with a legislative framework. The Republican chair of the House Financial Services Committee brought forth a new draft that regulates stablecoins. More interestingly, it includes suggestions given by their democratic counterparts too.
However, it should be understood that it’s still a draft and nothing is set in stone for now. The committee hearing is slated to happen on June 13. And whatever may the result be, the coming together of both parties is considered a landmark event by many. Crypto enthusiasts are hopeful that this would pave the way towards the regulation of digital assets in the US.
A revised draft with little tweaks
As per the committee spokesperson, the draft is shorter than the proposals of this nature. It also combines the positions of both parties while adding more points from the Republican committee members. Its major highlight is that it would involve the federal body to ascertain the requirements for issuing stablecoins. However, it would still give the rights to the regulators to supervise companies issuing the tokens.
Moreover, the bill empower the Feds with some additional powers that were mentioned in the Republican party’s previous draft. It would authorize the personnel to act against state-regulated issuers in case of emergencies. Also, the states would be able to delegate their overseeing responsibilities over to the federal officers.
The panel’s chairman, Rep. Patrick McHenry said that thought of regulating stablecoin even before he took control of the committee. After getting reins in his hands, he continued his work. At the same time, Democrats had accused the Republicans of neglecting their input while rewriting the bill. Reportedly, the bilateral support and the delimited nature were the two main USPs of this bill. However, it is not clear what the former thinks of the latest version of the draft.
If enacted, it would be the first bill for cryptocurrency passed by both houses. It is the first regulation for a stablecoin, a certain class of digital assets that are guaranteed against real-life assets. Since their advent, the crypto community has extensively used it for trading volatile coins.
Notably, the new draft has done away with one ruling that was part of the earlier version. The left-out pointer mandated the research on the merits of a digital dollar. Now the idea of assessment was refuted by Republicans earlier as well. On the other hand, the Federal Reserve has never taken a firm stance on the issuance of a central bank digital currency or similar entities.
Conclusion
The induction of the draft is considered a positive step taken toward the acceptance of cryptocurrency. However, we have if it keeps all the attributes of cryptocurrency intact or not. While the SEC is cracking the whip over the exchanges, it is interesting to the government is taking some steps to embrace crypto.
