US House Committee Publicizes Potential Stablecoin Bill Of 2023

Key Points:

• The US House of Representatives Financial Services Committee has released a draft version of the landmark stablecoin bill.
• Represents the first significant piece of crypto legislation to be passed in 2023.
• A House Financial Services subcommittee will hold a hearing on stablecoins on Wednesday.

The US House Financial Services Committee unveiled a draft of a potentially historic stablecoin bill that calls for studying a central bank digital currency (CBDC), as well as a moratorium on stablecoins backed by other cryptocurrencies.

The bill, which is available on the committee’s hearing page, is the first significant piece of crypto legislation to advance in 2023 and comes in the wake of two important stablecoin-related events over the previous year: the collapse of terraUSD (UST), which was backed by a token called LUNA, and the temporary detachment of the second-largest stablecoin, USD coin (USDC), from the US dollar.

It establishes definitions for payment stablecoin issuers, using language similar to that used by former Pennsylvania senator Pat Toomey (R) when he unveiled his own stablecoin legislation in 2022.

The ban on stablecoins like UST will last until a study can be conducted. The bill also seeks a study of the potential impact of CBDCs issued by the Federal Reserve.

On Wednesday, a House Financial Services subcommittee will hold a hearing on stablecoins with testimony from Dante Disparte of Circle Internet Financial, which issues USDC, Jake Chervinsky of the Blockchain Association, Columbia Professor Austin Campbell, and Superintendent Adrienne Harris of the New York Department of Financial Services.

A day later, the full Financial Services Committee will convene to hear from Gary Gensler, the chair of the Securities and Exchange Commission.

U.S. lawmakers are working to control the cryptocurrency market with special regulations after the shocking collapse of the second largest cryptocurrency maker FTX in late 2022 and the Banking crisis spread in America.

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