The US House of Representatives has released a new draft bill aimed at establishing a regulatory framework for stablecoins, just ahead of a hearing on the topic scheduled for April 19.
The proposed legislation would place non-bank stablecoin issuers under the supervision of the Federal Reserve, with insured depository institutions seeking to issue stablecoins being overseen by the appropriate Federal banking agency.
Failure to register could result in a $1 million fine and up to five years in prison. Among the approval criteria is the ability of the applicant to maintain reserves backed by US dollars or Federal Reserve notes, technical expertise, governance, and the benefits of financial inclusion and innovation.
Additionally, the bill proposes a two-year ban on creating or issuing stablecoins not backed by real assets. The Treasury Department would also conduct a study on “endogenously collateralized stablecoins.”
