US House Committee Releases New Stablecoin Bill Draft

The United States House Financial Services Committee has released the third draft of the stablecoin bill presented by its chairman, Representative Patrick McHenry. The latest draft of the bill is bipartisan and includes specific proposals from Republican and Democratic committee members.

The Future of Digital Assets: A draft bill providing clarity for the digital asset ecosystem was first proposed on June 8 and is expected to be discussed during a committee hearing on June 13.

The latest version of the bill proposes the US Federal Reserve as the lead regulator formulating the requirements for the issuance of the stablecoin. However, at the same time, the bill aims to offer state regulatory powers to oversee companies issuing tokens.

The bill further discusses legislation on who can issue stablecoins and the requirements for payment stablecoins. If approved, the bill would be the first comprehensive guidance on supervision and enforcement of stablecoin markets in the United States. The Bill also proposes a moratorium of two years for collateralized stable coins from the date of enactment.

If approved by the committee and passed by the US House of Representatives and the Senate, the bill would become the first instance of crypto legislation in the United States.

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The latest version also gives some additional powers to the federal regulator as compared to the previous version. These powers include the power to intervene against state-regulated issuers in cases of emergency. The states would also be entitled to delegate their supervisory duties to the federal watchdog, if necessary.

A previous version of the draft bill, released on April 24, focused on stablecoin payments instead of overseeing other aspects of digital asset markets, such as custodial service providers and algorithmic stablecoins. The latest version of the bill is more concise and also gives specific powers to state legislatures.

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