Senators Kirsten Gillibrand of New York and Cynthia Lummis of Wyoming are planning to present a new bill in the Senate. This proposed legislation includes two options for stablecoin issuers to gain stability.
Sen. Gillibrand Plans Stablecoin Legislation
The story of crypto regulation in the US remains unfolding as a new proposed law for overseeing stablecoins is set to be presented in the Senate. Sen. Kirsten Gillibrand (D-NY) has disclosed that discussions are underway regarding this legislation, which could be submitted to the Senate by the end of this week or the following week.
At the Bitcoin Policy Summit held at the National Press Club in Washington on April 9, Senator Gillibrand addressed the crowd, expressing her views.
To ensure that state and federal regulatory bodies can prevent unscrupulous practices while fostering expansion and advancement, we’re granting them the necessary supervisory power. Simultaneously, all issuers will be obligated to restore their reserves to a one-to-one ratio.
Proposing Two Routes For Stablecoin Issuers
Senator Gillibrand explains that the new legislation is designed with the initial aim of enabling Bitcoin and similar cryptocurrencies to be used as forms of payment in mind. By setting up regulations for stablecoins, she believes we can create a solid foundation that will allow Bitcoin and other crypto assets to reach their full potential.
The Federal Reserve, the Treasury Department, and New York State’s Department of Financial Services are collaborating on legislation creation. This legislative proposal offers two possible routes for stablecoin issuers to follow towards stability.
According to the law, banks with federal or state charters have the ability to be authorized as stablecoin issuers. Additionally, non-bank institutions are also allowed to issue stablecoins, but they must submit to federal oversight.
A Bipartisan Approach
Senator Gillibrand agreed that involving more bipartisan viewpoints and passing the bill in both houses of Congress was essential. Senator Cynthia Lummis, a Republican from Wyoming who had previously opposed Biden’s plan to tax crypto miners, is also part of this legislation. The two senators have collaborated on drafting the Lummis-Gillibrand Act in the past, which aims to establish a comprehensive regulatory structure for the cryptocurrency industry.
Chairman Patrick McHenry (R-N.C.) and Ranking Member Maxine Waters (D-Calif) of the House Financial Services Committee are actively engaged in the talks over the legislation. For this bill to become a law, their cooperation will be essential throughout the process.
Talking about the bill, Senator Gillibrand said,
“The legislation represents a sensible agreement between federal, state, and industry parties. It addresses their various concerns and encourages advancements in the realm of cryptocurrencies.”
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2024-04-11 15:10