New Stablecoin Bill Drafted Proposed To Enhance U.S. Regulatory Supervision

Key Points:

• The Republican chairman of the House Financial Services Committee has issued a fresh draft of the primary US legislative proposal for stablecoin oversight.
• The bill that has been posted is still a draft.
• If filed and enacted by both houses of Congress, the bill would create the first stablecoin rules in the United States.

The Republican chairman of the Financial Services Committee of the U.S. House of Representatives released a new draft of the main legislative proposal for stablecoin regulation.

That includes some positions from Democratic lawmakers, which will be discussed further at a committee hearing on June 13. If the bill is introduced and passed by both houses of Congress, it will establish the first stablecoin regulations in the United States.

The new draft also eliminates an earlier section calling for research into the merits of a digital dollar, an increasingly divisive idea criticized by Republicans, despite the Federal Reserve’s insistence that it has not taken a position on whether such a central bank digital currency (CBDC) is warranted for the United States.

The draft would require the Fed to set requirements for issuing stablecoins but would still let state regulators oversee companies that issue those tokens and would give the Fed some additional powers, including the power to intervene with state-regulated issuers in emergencies. States could also hand over their regulatory responsibilities to federal regulators. The new draft also removes an earlier section calling for a study of the merits of a digital dollar.

A spokesman for the committee said the new draft was intended to begin to blend some of the bipartisan positions and further add to the views of Republican committee members.

Rep. Patrick McHenry, the panel’s chairman, has made stablecoin legislation a priority since taking over the committee last year. As he took the gavel, he resumed work, despite Democratic complaints that Republicans were rewriting the bill without their involvement.

As Coincu reported early last month, House Democrats are exploring their version of a long-anticipated stablecoin bill, but their views show a significant schism with a parallel Republican attempt.

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