Republicans propose stable currency legislation to deregulate stablecoin payments

04/25/2023 20:31 • Metaverse Matters • 88 views

According to reports, Republicans in the US House of Representatives have proposed a new draft of stable currency legislation that will deprive the agency of jurisdiction over the payment of stable currency. As negotiations on a comprehensive framework for stable currencies continue, the draft is being released at the time of the US Securities and Exchange Commission’s investigation into BUSD, a shared stable currency between digital asset infrastructure company Paxos and the International Cryptocurrency Exchange Binance. The bill will transfer the power of stable currency to federal and state banks and credit union regulatory agencies.

Republicans in the US House of Representatives hope to remove the stable currency from the power of the SEC

The US House of Representatives has proposed a new draft of stable currency legislation that will deprive the agency of jurisdiction over the payment of stable currencies. This move comes as negotiations on a comprehensive framework for stable currencies continue.

Understanding the new stable currency legislation

The new bill proposed by Republicans will transfer the power of stable currency to federal and state banks and credit union regulatory agencies. This means that stable currencies will no longer be under the jurisdiction of the US Securities and Exchange Commission (SEC). The primary aim of the bill is to provide regulatory clarity for stable currencies while removing the burden of regulation from startups and small businesses.

Impact on the stablecoin industry

The proposed new legislation will have a significant impact on the stablecoin industry in the US. The SEC has been investigating BUSD, a shared stable currency between digital asset infrastructure company Paxos and the International Cryptocurrency Exchange Binance. The investigation has been ongoing for several months, and the SEC has not yet made any public comment on the outcome.
The new legislation could bring much-needed regulatory clarity to the industry. The lack of clear regulation has been a significant challenge for the stablecoin industry, with issuers and users unsure of the legal and regulatory framework surrounding these currencies.

The benefits of deregulation

Supporters of the new legislation argue that it will help to reduce the regulatory burden on startups and small businesses. They also believe that it will reduce the cost of compliance for stable currency issuers.
By transferring the power of stable currency to federal and state banks and credit union regulatory agencies, the bill aims to streamline the regulatory framework for stable currencies. This will make it easier for businesses to launch and use stable currencies.

Conclusion

The proposed new stable currency legislation has the potential to provide much-needed regulatory clarity to the stablecoin industry in the US. The move is aimed at reducing the regulatory burden on startups and small businesses while streamlining the regulatory framework for stable currencies.
As negotiations for a comprehensive framework for stable currencies continue, it remains to be seen how the industry will react to the proposed new legislation. However, with the potential benefits of deregulation, this could be a positive step forward for the stablecoin industry in the US.

FAQs

1. What is stable currency legislation, and why is it important?
Stable currency legislation provides a legal and regulatory framework for stable currencies, making it easier for businesses to launch and use these currencies. It is important as it reduces the regulatory burden on startups and small businesses while providing much-needed regulatory clarity to the industry.
2. How will the new bill impact the stablecoin industry?
The bill will transfer the power of stable currency to federal and state banks and credit union regulatory agencies, removing the jurisdiction of the SEC. This could provide much-needed regulatory clarity while reducing the cost of compliance for stable currency issuers.
3. What are the benefits of deregulation for the stablecoin industry?
Deregulation reduces the regulatory burden on startups and small businesses, making it easier for them to launch and use stable currencies. It also reduces the cost of compliance for stable currency issuers, making these currencies more accessible to a wider range of users.

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