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…Researched and contributed by Lola Smith.
The U.S. House Financial Services Committee has introduced its first major piece of crypto legislation for 2023.
The bill can be found on the Committee’s hearing page and marks an important step towards regulating the crypto industry.
Defining Payment Stablecoin Issuers
The bill creates definitions for payment stablecoin issuers, which echoes a term used by former Senator Pat Toomey (R-Pa.) when he introduced his own stablecoin bill in 2022.
The aim is to provide greater clarity around the use of stablecoins, which are often used as a form of payment.
Moratorium on New Stablecoins Backed by Other Types of Tokens
In addition to creating definitions, the bill also calls for a moratorium on new stablecoins that are backed by other types of tokens until a study can be conducted.
This could help to prevent instability in the market and ensure that stablecoins are adequately backed.
Commentary
The introduction of this crypto legislation by the U.S. House Financial Services Committee is an important step towards regulating the crypto industry.
The creation of definitions for payment stablecoin issuers is a positive move that could provide greater clarity for businesses and investors.
The moratorium on new stablecoins backed by other types of tokens is also a sensible measure that could help to prevent instability in the market.
However, it remains to be seen what the results of the study will be and what impact it will have on the crypto industry.
Overall, this bill represents an important development in the regulation of the crypto industry and could pave the way for further legislation in the future.
It demonstrates the growing recognition of the need to regulate the industry in a way that protects investors and promotes stability.