Bill Addressing Stablecoins Risks In The US Is Most Likely Postponed Until September

A bill addressing the possible risks of stablecoins has apparently been delayed for consideration by lawmakers in the US House of Representatives.

According to a Monday report from the Wall Street Journal, people familiar with the matter said House members will likely delay voting on a stablecoin bill until September after being unable to complete a draft in time for a Wednesday committee meeting. 

The restrictions on custodial wallets from the Treasury Department and worries from the Securities and Exchange Commission were allegedly among the outstanding difficulties in the measure.

In order to respond to the law, Treasury Secretary Janet Yellen allegedly intended to work with the Biden administration. However, Yellen previously asked for regulatory clarification in the cryptocurrency field regarding stablecoins, citing worries over TerraUSD (formerly UST) depegging from the U.S. dollar. Neither has publicly commented on the proposed legislation. The executive order signed by President Joe Biden in March seeks to close supervision gaps for digital assets.

The bills proposing to regulate stablecoins in the United States

Numerous measures that would have regulated stablecoins in the US have been postponed or otherwise failed to get through the legislative process. The Stablecoin Innovation and Protection Act, presented in February by New Jersey Representative Josh Gottheimer, would enable the Federal Deposit Insurance Corporation to back stablecoins similarly to fiat deposits. A bipartisan bill that Cynthia Lummis and Kirsten Gillibrand submitted in the Senate in June also called for regulating stablecoins issued by financial institutions, but its consideration may not happen until 2023.

In the UK, MPs have been working on stablecoin legislation despite a change in the government in July as a result of Boris Johnson’s response to a controversy. Johnson will soon be the new prime minister of the country. The nation’s Department of Treasury allegedly started debating whether accepting stablecoins as payment is acceptable.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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