Congresswoman Rashida Tlaib, in association with congressmen Jesús García and Chairman of Task Force on Financial Technology Rep. Stephen Lynch, proposed a draft bill that tries to defend customers from cryptocurrency-related financial threats.
New Congressional bill states it would be ‘illegal’ to issue stablecoins
A law such as the STABLE Act will guarantee that these companies work under the regulators to secure the consumer’s protection.
According to a statement published by the office of Rep. Rashida Tlaib, the draft bill, if passed, “would defend customers from the threats professed by rising digital payment tools, such as Facebook’s Libra and other Stablecoins currently allowed in the market, by managing their issuance and relevant commercial movements.
The lawmakers’ bill called the “Stablecoin Tethering, and Bank Licensing Enforcement (STABLE) Act is intended to supervise the movements of Facebook’s proposed digital currency, Diem. Other stablecoins will also come under this bill, where movements such as issuance could be observed.
The bill would prominently direct that any planned issuer of a stablecoin to get a banking license” and “that any business giving stablecoin services must obey the proper banking laws under the current governing rules. The law was put forward by Tlaib along with Reps. Stephen Lynch and Jesús García — all of whom approved a letter that aimed U.S. Comptroller Brian Brooks for his locus on cryptocurrency-related concerns earlier this month.
The bill states that stablecoins are a sort of security under federal legislation, as tweeted by Rohan Grey, an assistant professor at Willamette Law.
According to the bill, the draftees seem to be pitching a broad administrative web to include those that issue stablecoins or give business services linked to them.
The text states:
It shall be unlawful for any person to issue a stablecoin or stablecoin-related product, to provide any stablecoin-related service, or otherwise engage in any stablecoin-related commercial activity, including activity involving stablecoins issued by other persons, without obtaining written approval in advance, and on an ongoing basis, from the appropriate Federal banking agency, the Corporation, and the Board of Governors of the Federal Reserve System
Trading Bitcoin is too complicated?
We highly recommend our Crypto-Starter-Kit to you!
Or are you looking for the current Bitcoin Price in USD? Look no further!
Bitcoin Price, Ethereum Price, Ripple Price
This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission - but the prices do not change for you! :)
Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
You might also like
More from Regulation
New U.S. Bill Aims to Introduce Blockchain into Federal Systems
Representative Darren Soto, a Democrat from Florida's 9th district, filed the bill H.R.9067 on Thursday, December 31, 2020. H.R.9067 aims …
Newly Proposed Crypto Regulations “Unlikely” To Hamper Coming Bull Run
For the last few weeks, the blockchain community had been waiting for the new regulations that were rumored to be …
BREAKING: People’s Bank of China Cracks Down on Stablecoins
The People's Bank of China (PBoC) is asking for public feedback to review the ongoing central banking law, which intends …
