US congressional committee advances stablecoin bill

[Eugene]

Source: Reuters

US congressional committee advances stablecoin bill

Hannah Lang
Thu, July 27, 2023 at 10:57 AM EDT·1 min read

(Reuters) -The U.S. House Financial Services committee on Thursday advanced a bill to establish a federal regulatory framework for stablecoins, a type of cryptocurrency typically pegged to a traditional asset, often the U.S. dollar.

The bill would have the U.S. Federal Reserve write requirements for issuing stablecoins while preserving the authority of state regulators. It was previously modified to address concerns from some Democrats that stablecoin issuers could evade stricter oversight by opting to be regulated under a state regime.

Several Democrats, including Reps. Jim Himes and Josh Gottheimer, joined committee Republicans in voting to advance the bill.

But Representative Maxine Waters, the committee's top Democrat, opposed the bill, arguing it had "major flaws," including a loophole that would allow commercial companies to issue their own money.

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Read more: https://finance.yahoo.com/news/us-congressional-committee-fails-reach-145750435.html