A U.S. senator has launched a invoice to “establish the first federal regulatory framework for payment stablecoins.” The lawmaker defined: “This bill will also ensure the Federal Reserve, which has displayed significant skepticism about stablecoins, won’t be in a position to stop this activity.”
Stablecoin TRUST Act of 2022
U.S. Senator Pat Toomey (R-PA), rating member of the Senate Committee on Banking, Housing, and Urban Affairs, launched the “Stablecoin Transparency of Reserves and Uniform Safe Transactions Act of 2022” on Wednesday. The invoice is often known as the “Stablecoin TRUST Act of 2022.”
According to the lawmaker, the laws would “establish the first federal regulatory framework for payment stablecoins and guide Congress towards a path for sensible regulation of cryptocurrencies.” Senator Toomey opined:
I hope this framework lays the groundwork for my colleagues to move laws subsequent yr safeguarding buyer funds with out inhibiting innovation … This invoice will even make sure the Federal Reserve, which has displayed vital skepticism about stablecoins, gained’t be ready to cease this exercise.
“Stablecoins are an exciting technological development that could transform money and payments. By digitizing the U.S. dollar and making it available on a global, instant, and nearly cost-free basis, stablecoins could be widely used across the physical economy in a variety of ways,” Toomey famous. The lawmaker from Pennsylvania might be retiring from the Senate on the finish of his time period in January subsequent yr.
The invoice “encourages competition by authorizing several types of regulated entities to issue payment stablecoins,” the Senate Committee on Banking, Housing, and Urban Affairs described, including that it “enhances financial stability by requiring that all payment stablecoins are fully backed by high-quality liquid assets.” Furthermore, the invoice “establishes transparency by subjecting all payment stablecoin issuers to standardized disclosure requirements and attestations by registered accounting firms,” the Senate committee additional detailed.
Toomey printed a draft of this Stablecoin TRUST Act again in April, calling it “the first Senate bill to establish a comprehensive regulatory framework for payment stablecoins.”
The senator from Pennsylvania is pro-crypto. Last week, he mentioned cryptocurrency can’t be stopped and that the collapse of crypto Exchange FTX isn’t an indictment in opposition to cryptocurrency. In February, the lawmaker mentioned crypto belongings are right here to keep and a totally diversified portfolio ought to have some.
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