Since years, I have heard that the stablecoin will be amongst the first aspects of cryptocurrency to become regulated.
There have been a couple of stablecoin bill introduced, and they’ve even marked them up. But nothing has yet passed. This year, with Trump 2.0 on the Hill and the Republican majority in the House of Representatives, we may start to see movement.
The industry may be in agreement on generalities, but not specifics.
According to some, the latest versions of stablecoin law prohibit non US issuers from buying Treasurys. Although I couldn’t confirm it, I haven’t seen any drafts that include this language. However, this doesn’t necessarily mean lobbyists aren’t pushing for this on Capitol Hill.
Circle and Coinbase (according to those familiar with the matter) have been pushing for legislation that is more US-centric. Circle is in a good position to benefit from requiring foreign issues like Tether to go through more hurdles, as USDC has the largest market cap of any stablecoin.
This month, Republican senators Tim Scott Bill Hagerty Cynthia Lummis teamed up with Democrat Kirsten Gillianbrand to create the GENIUS Act. The bill is a stablecoin that establishes, amongst other requirements, reserve and liquidity standards for stablecoin payment issuers.
French Hill and Bryan Steil, Republicans in the House released a Discussion Draft for the STABLE Act. This draft also stipulates issuers have to keep 1:1 reserves, and maintain high liquidity.
There haven’t been any markups scheduled for this session yet, but I was told that we may start seeing movement next month. The witnesses called to give testimony will certainly be of interest.
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