US officials are hashing out new regulatory proposals on stablecoins in an attempt to establish clarity on the fast-moving technology and asset class.
The US Financial Services Committee held a hearing on Thursday that focused on two proposals, one from Republican French Hill, and one from Democrat and Ranking Member Maxine Waters, which was introduced more recently.
The main difference between the two bills is that the Republican version aims to allow state regulators more jurisdiction over stablecoin rules whereas the Democrat bill proposes giving full authority exclusively to federal regulators.
Both bills lay out rule proposals for requirements on liquidity, transparency, and reserves for stablecoin issuers.
Hill said coming to an agreement was critical to allowing the burgeoning industry to blossom safely in the US rather than slip away from American oversight.
“Without action from Congress, however, offshore and opaque projects will continue to thrive and stablecoin issuers will not feel confident to seek opportunities in the United States, and to echo the hearing title, stablecoins will not be stable.
Thus, opposing legislation is not a vote in favor of consumer protection. Rather, it’s a vote for putting consumers at risk by allowing a regulatory environment that pushes stablecoins further away from an appropriate US regulatory oversight.”
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