• The House Financial Services Committee has released a revised version of its stablecoin bill.
• The new version includes the treatment of customer assets by firms providing custodial services and the study on endogenously collateralized stablecoins.
• A hearing is scheduled for June 13 to discuss the draft.
House Financial Services Committee Releases New Version Of Stablecoin Bill
The House Financial Services Committee under Republican leadership has released a revised version of their stablecoin bill after receiving feedback from Democratic members. This new version includes elements such as the treatment of customer assets by firm providing custodial services, and a study on endogenously collateralized stablecoins.
Overview Of The Stablecoin Bill
The bill aims to regulate payment stablecoins specifically, allowing state regulators to supervise stablecoin issuers, with Federal regulators having a primary role by issuing capital and liquidity requirements. Furthermore, it defines endogenously collateralized stablecoins as any digital asset “in which its originator has represented will be converted, redeemed, or repurchased for a fixed amount of monetary value; and that relies solely on the value of another digital asset created or maintained by the same originator to maintain the fixed price”.
Divide Between Republicans And Democrats On How To Regulate Stablecoins
There had been some bumps in the road between House Democrats and Republicans in that committee over the past year due to differing opinions on how best to regulate stablecoins. Chair Patrick McHenry (R-NC) and former chair Rep Maxine Waters (D-CA) had worked together on a bill last year but two bills had seemingly emerged ahead of that hearing before their negotiations fell apart shortly before elections – with Democrats criticizing Republicans for weakening customer protections and federal oversight in response.
Upcoming Hearing On June 13th To Discuss Draft Bill
A hearing is scheduled for June 13th titled “The Future Of Digital Assets: Providing Clarity For The Digital Asset Ecosystem” wherein this draft bill will be discussed. It remains uncertain whether both parties can reach an agreement after this meeting takes place but one thing is certain – all eyes will be upon them as they attempt to come up with legislation governing payment stablecoins in order to protect both investors and consumers alike while also encouraging innovation within this space.
Conclusion
It remains unclear what sort of agreement can be reached between both sides when it comes to regulating payment stablecoins but if history has taught us anything it’s that compromise is key when dealing with these matters, especially when taking into account consumer protection measures along with fostering innovation within this space at the same time. We’ll find out more during next week’s hearing so stay tuned!