According to a source familiar with the matter, issuers of stablecoins will be subject to bank-like regulations and supervision under a draft bill championed by senior members of the US House of Representatives.
Issuers of stablecoins tie their value to traditional currencies such as the U.S. dollar on the claims that the currencies exhibit low volatility. However, the recent decline and collapse have led to critical scrutiny by regulators and lawmakers.
Among the objectives of the bill are to subject stablecoins issuers, like traditional banks, to prudent standards on capital, liquidity and supervision; to allow non-banks to issue stablecoins, provided that they comply with stricter supervision, but prohibit companies from issuing their own stablecoins.
The bill also requires issuers to hold reliable and enough reserves.
Although the bill is being pushed by leading Democrats and Republicans on the House Financial Services Committee, it faces an uncertain future in Congress, since the Senate is not yet engaged in negotiations, and with midterm elections scheduled for November, a conclusion may not be reached anytime soon.
The sources for this piece include an article in Reuters.