Two US senators are reportedly looking to introduce new stablecoin rules sometime this week or next.
According to a new report from Forbes, Senators Kirsten Gillibrand, a Democrat from New York, and Cynthia Lummis, a pro-crypto Republican from Wyoming, announced earlier this week that they will jointly introduce new stablecoin rules.
As Gillibrand says according to Forbes:
“[The goal is] unlocking the potential of crypto and Bitcoin’s original purpose as a means of payment. We’ve worked with the Fed, the Treasury Department, and the New York State Department of Financial Services to enable non-custodial institutions to issue stablecoins while promoting safety and soundness within the industry…
We ensure that state and federal regulators have the oversight authority to root out bad actors while promoting growth and innovation. And we require all issuers to restore reserves to one-for-one.”
While negotiations are still taking place, Gillibrand says the legislation aims to propose two different paths that stablecoin issuers can take. State and federal chartered banks would be allowed to become stablecoin issuers after going through an approval process.
The other path, which is for non-depository institutions, would give the federal government authority over non-bank state entities while preserving states’ rights to act as primary regulators, the report said.
“The bill is a product of common sense compromise. It balances the interests of federal, state, and industry stakeholders. It will help drive innovation in the cryptocurrency landscape.”
Gillibrand says the stablecoin regulations will unlock the true potential of digital assets and that other senators, such as Patrick Henry, a Republican from North Carolina, and ranking member Maxine Waters of the House Financial Services Committee, a Democrat from California, are part of the ongoing negotiations.
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