U.S. House Committee Releases Draft Bill on Stablecoins.

Ever since the onset of the crypto space, regulations has been one of the most common topic to be discussed among the community members. Moving forward to 2017, when the crypto space got a huge boost and recognition globally, the governing bodies started to take notice of the new asset. Ever since then it has been a step that the whole world has been looking forward to.

Taking that sentiments till 2022, the Indian government laid out a few taxes for the ‘virtual digital assets‘, and now, following up from their investigations, the U.S. House Financial Services Committee have published a draft version of a potential stablecoin bill, which contains proposals, including a moratorium on stablecoins that is backed by other crypto assets and a request to study a central bank digital currency, commonly referred to as CBDC.

This move is the first major piece of crypto legislation that has taken place in 2023; following the two major stable coin incidents of 2022. They are:

• The blowup of the TerraUSD (UST). A stablecoin that was backed by a crypto token called LUNA
• The second-largest one being the USD coin (USDC). The stablecoin temporarily fell from its from $1 valuation.

Read more: USDC Stablecoin Depeg after SVB Collapse

Click here to access the draft Stablecoin Bill from the U.S House Committee 

Some of the Highlights Of The Draft Bill:

• It puts the Federal Reserve in charge of nonbank stablecoins
• It states a ban on new stablecoins that does not have fiat backing
• It allows the government to set the interoperability standards
• The bill suggested the Fed to study the digital dollar.

Untill a full fledged study is conducted, the moratorium on stablecoins such as UST would be lasting. This draft Stablecoin Bill also stated that they will be looking into studying of the potential impact that a CBDC issued by the Federal Reserve can bring.

Coming Wednesday, the House Financial Services subcommittee is set to hold a meeting on stablecoins. The meeting is also said to be joined by the following people:

• Dante Disparte from Circle Internet Financial, who issues USDC
• Jake Chervinsky of the Blockchain Association
• Columbia Professor Austin Campbell
• Adrienne Harris, the Superintendent of the New York Department of Financial Services

As per the CoinDesk report, this hearing is set to come out a day after the full Financial Services Committee is set to meet and hear from Gary Gensler, the Securities and Exchange Commission Chair. According to a spokesperson for Rep. Patrick McHenry, who is the chair of the committee, commented that the bill that has been published on the site had been in circulation among various lawmakers since the fall of 2023.