US officials are coming up with new regulatory proposals for stablecoins in an effort to bring clarity to the fast-moving technology and asset class.
The US Financial Services Committee held a hearing on Thursday on two proposals, one from Republican French Hill and one from Democrat and Ranking Member Maxine Waters, introduced more recently.
The main difference between the two bills is that the Republican version aims to give state regulators more jurisdiction over stablecoin rules, while the Democratic bill proposes giving full authority exclusively to federal regulators.
Both bills include regulatory proposals for liquidity, transparency, and reserves requirements for stablecoin issuers.
Hill said reaching an agreement was critical to allowing the fast-growing industry to flourish safely in the US rather than slipping away from US oversight.
“However, without Congressional action, offshore and opaque projects will continue to thrive and stablecoin issuers will lack confidence to seek opportunity in the United States, and to reiterate the title of the hearing, stablecoins will not be stable.
Voting against legislation is therefore not a vote for consumer protection. Rather, it is a voice to endanger consumers by allowing a regulatory environment that pushes stablecoins further away from appropriate US regulatory oversight.”
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