The U.S. Home Monetary Companies Committee revealed a draft model of a possible landmark stablecoin invoice, with proposals together with a moratorium on stablecoins backed by different cryptocurrencies and a request to check a central financial institution digital forex (CBDC).
The invoice, obtainable on the committee’s listening to web page, represents the primary main piece of crypto laws to maneuver in 2023, and follows two key incidents over the previous 12 months involving stablecoins: the blowup of terraUSD (UST), which was backed by a token known as LUNA, and the second-largest one, USD coin (USDC), briefly changing into unmoored from $1.
It creates definitions for cost stablecoin issuers, echoing a time period former Senator Pat Toomey (R-Pa.) used when he launched his personal stablecoin invoice in 2022.
The moratorium on stablecoins like UST would final till a research will be performed. The invoice additionally seeks a research of the potential influence of a CBDC issued by the Federal Reserve.
Punchbowl Information first reported on the invoice’s publication.
A Home Monetary Companies subcommittee will maintain a listening to on stablecoins on Wednesday, that includes Dante Disparte from Circle Web Monetary, which points USDC; the Blockchain Affiliation’s Jake Chervinsky; Columbia Professor Austin Campbell and New York Division of Monetary Companies Superintendent Adrienne Harris.
That listening to will come a day after the complete Monetary Companies Committee meets to listen to from Securities and Change Fee Chair Gary Gensler.
A spokesperson for Rep. Patrick McHenry (R-N.C.), the chair of the committee, informed CoinDesk the invoice revealed on the positioning had been circulating amongst lawmakers since final fall. (It had not beforehand been shared with the general public.) A spokesperson for Rep. Maxine Waters (D-Calif.), the rating member of the committee, didn’t reply to a request for remark by press time.
UPDATE (April 15, 2023, 21:33 UTC): Provides response from a spokesperson for Rep. Patrick McHenry.
Edited by Danny Nelson.