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    Congress Could Have Stablecoin Bill By March’s End

    There could be bills introduced this month

    A source anonymous has claimed that a source had told BlockworksIt is possible that rival versions of a U.S. stabilizecoin regulation bill will be introduced before the end this month.

    U.S. Representative Josh Gottheimer created an early draft in February. That draft proposed a “qualified” definition that would apply to stablecoins issued by banks and other institutions.

    The aim of the bill seems to be related to a report on stablecoins from the President’s Working Group on Financial Markets (PWG). This workgroup recommended that stablecoin issuers be regulated by Federal Deposit Insurance Corporations (FDIC), as is the case with banks.

    Though there is reportedly some disagreement over the guidance contained within the bills, it is said that the bills’ content will generally concern stablecoin reserves.

    Bill Could Avoid Tether-Like Problems

    Stablecoins may be issued by any institution, group or person with little to no regulatory oversight from the United States.

    The regulators have scrutinized Tether, which is the issuer of USDT stablecoins, very closely. Tether was fined $2,500 by the CFTC in Oct 2021 for misrepresenting its reserves. Tether and its sister company Bitfinex were targeted by the New York Attorney General’s office in 2019 for allegedly covering up missing funds.

    Ron Hammond from the Blockchain Association spoke. Blockworks that the upcoming bill likely aims to “prevent another situation like Tether” by requiring audits of stablecoins issuers and by clarifying which assets can be used in stablecoin reserves.

    This bill could also open the door to the creation of a digital currency central bank (CBDC) in other parts of the U.S. government. In January, the Federal Reserve published a CBDC Report.

     

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