US Regulators Pass Bill to Regulate Stablecoin Issuance

Liputan6.com, Jakarta The US Republicans on the Financial Services Committee on Monday, April 24, 2023 released a new bill to regulate stablecoin issuers.

This new bill is half the length of the previous draft and is closely tailored to focus on the rules governing the registration and approval process for individual stablecoin issuers.

Reporting from CNBC, Wednesday (26/4/2023), stablecoins are a type of cryptocurrency issued by private entities and designed to maintain a stable value pegged to traditional assets, such as the US dollar.

They are not used in trading, stablecoins are usually accepted as payment for goods, but have become very popular on crypto platforms.

The bill contains many features of the version negotiated last year, such as a requirement for payment stablecoin issuers to be approved and regulated by a federal payments stablecoin regulator or a “qualified state payment stablecoin issuer registered.”

To be approved as issuers, stablecoin providers must meet reserve capital requirements and provide monthly disclosures of their reserve portfolio. It also clarifies and updates US law to confirm stablecoins are not securities, and by extension, must not be regulated by the SEC.