The CEO of Circle, a stablecoin issuer, is urging lawmakers to prioritise the passage of a stablecoin bill and secure President Joe Biden’s signature. This is because several other countries are making significant progress in this area.
During his prepared remarks for the House Financial Services Committee hearing scheduled for Tuesday, CEO Jeremy Allaire stressed the significance of presenting a stablecoin bill to “President Biden’s desk.”
Allaire noted that regulations for US-issued dollar stablecoins are already being established by emerging laws in the European Union, Japan, and Hong Kong. He emphasised the importance of this fact, pointing out that other countries are implementing measures to regulate the usage of the US dollar. It is imperative for the United States to assume a leadership role in formulating global regulations that oversee the circulation of its currency across the world.
The Republicans of the House Financial Services Committee have been working hard on a bill regarding stablecoin. This bill will be discussed in detail during the upcoming hearing titled “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem.”
There has been recent progress in the form of compromises between Republicans and Democrats, which has resulted in an updated version of the bill’s discussion draught.
The main focus of the bill is to regulate payment stablecoins. It would give state regulators the power to supervise stablecoin issuers, while federal regulators would be responsible for setting capital and liquidity requirements.
The bill has been revised based on valuable feedback and now includes additional elements. These include provisions related to the treatment of customer assets by firms that offer custodial services, as well as a study on endogenously collateralized stablecoins. A spokesperson for the committee has confirmed these changes.
Allaire emphasises the significance of the stablecoin bill, stating that it is crucial in laying the foundation for a regulatory framework that promotes a safe and thriving market for digital assets.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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