The US House Financial Services Committee has released a draft stablecoin bill in bipartisanship between House Republicans and Democrats. The full Financial Services Committee hearing on Tuesday aims to bring “clarity” regarding the digital asset market structure and regulation of payment stablecoins.
US House to Provide Clarity on the Digital Asset Ecosystem
The full US House Financial Services Committee hearing “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem” is scheduled on June 13.
The Financial Services Committee has released a third draft stablecoin bill combining concepts of both Republicans’ and Democrats’ financial services committees. The draft stablecoin bill aims regulation of payment stablecoins and other purposes.
“The term primary Federal payment stablecoin regulators means the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration.”
The bill contains details on primary Federal regulators, regulations on who can issue and requirements of a payment stablecoin, supervision and enforcement, state-qualified payment stablecoin issuers, and interoperability.
If the bill is passed, it imposes a 2-year moratorium making it unlawful to issue, create, or originate an endogenously collateralized stablecoin not in existence on the date of enactment of this Act.
The amendment to the Investment Advisers Act of 1940 will add that payment stablecoins are not “securities.” Moreover, federal agencies will have more authority and oversight of stablecoins than state regulators.
Chairman Patrick McHenry believes the bill marks the first step toward the regulation of crypto in the US. However, it’s still unclear what Democrats think about the bill. The bill needs to pass the US House and the US Senate to establish the first stablecoin regulation.
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Clarity on the SEC and the CFTC Jurisdiction on Crypto
According to the Digital Asset Market Structure Discussion Draft, the SEC’s jurisdiction is over digital assets offered as part of an investment contract. The CFTC will have jurisdiction over the digital commodity spot market.
The witnesses in the hearing include USDC-issuer Circle CEO Jeremy Allaire, Steptoe & Johnson LLP partner Coy Garrison, Ava Labs CEO Emin Gün Sirer, and National Futures Association president Thomas Sexton III.
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