US Senators Will Introduce New Stablecoin Bill This Week, What Will Change?
During the Bitcoin Policy Summit held at the National Press Club in Washington on April 9, New York Senator Kirsten Gillibrand revealed her plans for upcoming stablecoin legislation. The purpose of this legislation is to align with the original vision of Bitcoin (BTC) as a valid payment method. Collaborating with Wyoming Senator Cynthia Lummis, Gillibrand emphasized the legislation’s intent to spur growth and innovation in the crypto industry.
What Did Senators Say About the New Stablecoin Bill?
US Senators also noted that the proposed stablecoin legislation would also aim to provide regulatory oversight to root out bad actors. Gillibrand stated that this stablecoin legislation would unlock “the potential of crypto and Bitcoin’s original purpose as a means of payment.” Last year, Lummis and Gillibrand reintroduced the Responsible Financial Innovation Act. This law aims to create a comprehensive regulatory framework for all crypto assets.
On the other hand, new stablecoin legislation aims to give both federal and state regulators the authority to oversee stablecoin issuers. These issuers can be depository or non-depository institutions, thus promoting security and stability in the industry.
“We have worked with the Fed, Treasury and the New York State Department of Financial Services to allow non-depository institutions to issue stablecoins while promoting safety and soundness in the industry,” Gillibrand said.
It also emphasizes the need for a balanced approach. This approach takes into account the interests of federal, state, and industry stakeholders. The legislation aims to provide regulatory clarity by creating two distinct pathways for stablecoin issuers. It also aims to preserve the primary regulatory role of governments for non-bank institutions, according to a report by Forbes.
Also Read: Senator Warren Emphasizes AML Compliance of Crypto Validators
Call for Support from Senators and Members of Parliament
Negotiations are also ongoing as bipartisan and bicameral support is sought to advance the legislation. Gillibrand emphasized the importance of collaboration to ensure the bill becomes law. Additionally, the Senator emphasized the recognition of the importance of stablecoins as a fundamental regulatory step to unlock the full potential of crypto assets such as Bitcoin.
Commenting on the negotiations, Gillibrand acknowledged that broader support was needed. This includes bipartisan support from lawmakers like Chairman Patrick McHenry and House Financial Services Committee Ranking Member Maxine Waters. It is also worth noting that McHenry reiterated this thought at the Bitcoin Policy Summit. He highlighted the role of stablecoins as a critical first step towards comprehensive crypto regulation in the United States.
Also Read: Expert Links Support ripple Stablecoin’s Aims Towards tether‘s Success
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