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The U.S. House of Representatives Financial Services Committee has released the third draft of the stablecoin bill, introduced by Republican Party Chairman Patrick McHenry. The latest draft of the bill is aimed at bipartisan legislation and includes certain proposals from both Republican and Democratic financial services committees.
The bill, titled “The Future of Digital Assets: Bringing Clarity to the Digital Asset Ecosystem,” was first proposed on June 8 and is expected to be discussed at an upcoming committee hearing on June 13.
The latest version of the bill proposes the Federal Reserve as the key regulator tasked with formulating the requirements for the issuance of stablecoins. However, at the same time, the bill aims to give state regulators the power to oversee companies issuing tokens.
The bill also discusses legislation on who can issue these stablecoins and requirements for paying stablecoins. If approved, the bill will offer the first comprehensive oversight and enforcement guidance for stablecoin markets. The bill also proposes a two-year moratorium on collateralized stablecoins from the date of passage.
If approved by the U.S. House Financial Services Committee and the U.S. Senate, the bill will be the first form of cryptocurrency legislature in the U.S.
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The latest version also grants the federal regulator several additional powers over the previous bill. These additional powers include the power to intervene in the affairs of government-regulated issuers in emergency situations. On the other hand, states can also delegate their oversight responsibilities to a federal oversight body if they deem it necessary.
The previous version of the bill was released on April 24 and focused on stablecoin payments rather than other aspects of digital asset markets such as storage providers and algorithmic stablecoins. And the latest version of the bill became more concise, and also gave certain powers to the state legislature.