[Delio] EU Agrees on Landmark Crypto Law, While US Gov Could Pass Stablecoin Rules This Year
EU policymakers have reached a landmark deal on legislation to regulate crypto assets, and the U.S. federal government is advancing stablecoin legislation with Congress that could be passed by the end of the year, crypto media CoinDesk reported on July 1.
Policymakers have been debating the Markets in Crypto Assets (MiCA) framework for nearly two years. The legislative package sets up conditions for crypto issuers, including the need to publish a “whitepaper,” register with the authorities, and maintain proper bank-style reserves for stablecoins.
Christine Lagarde of the European Central Bank mentioned that further legislation would be needed to address new areas such as crypto lending. Non-fungible tokens (NFT) would also be excluded from the law altogether unless they can be fractionalized or split up.
MiCA has been widely welcomed by the industry because it can boost credibility, encourage adoption by conventional banks, and give crypto companies a single license to operate across the bloc. Additionally, the law sets strict guidelines for stablecoin issuers.
The legislative agreement comes as U.S. lawmakers consider their own stablecoin regulations. On Thursday, the US President’s Working Group on Financial Markets, an intergovernmental group composed of the heads of several financial regulators, have met to discuss recent stablecoin activities and upcoming legislation.
For U.S. regulatory reasons, stablecoins would be defined, and the law would cover their usage and issuance. The existing regulatory authority would be maintained as well. In this regard, Senator Pat Toomey (R-Pa.), ranking member of the Senate Banking Committee, has already suggested that a stablecoin law may be passed by the end of 2022.
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