[Delio] Stablecoin Issuers Aren’t Required to be Banks: New Crypto Bill
The major legislation that might pave the way for stablecoin rules is not anticipated to follow regulators’ proposal that only banks issue tokens, crypto media CoinDesk reported on July 18.
Stablecoins, which include dollar-tied tokens like Tether’s USDT and Circle Internet Financial’s USD coin (USDC), are intended to provide a stable means of moving in and out of more volatile cryptocurrencies, but they also represent crypto’s most concerning sector for financial watchdogs concerned about runs. While the measure’s provisions may not match one of the main recommendations from regulators, the working group also requested that “Congress move expeditiously to adopt legislation,” which appears to be the committee leaders’ goal.
Meanwhile, there are currently continuing debates over crypto regulation topic, where Republican politicians have suggested that stablecoins should not be completely restricted to banking and Sen. Patrick Toomey (R-Pa.) proposed a new federal license for stablecoin issuers to do business alongside traditional depository institution, it is unclear how the current House bill would allow for nonbank stablecoin issuers.
Despite the fact that digital assets had the “potential to actually fundamentally reform payments, Financial Service Forum event held in Washington, some lawmakers claiming that US authorities can’t properly manage this industry without legislative action.
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