Until it does not pass legislation targeting the crypto market, the United States may regulate stablecoins first. According to a new legislative proposal introduced in the Senate, the country may be the first to pass a law for crypto assets with prices pegged to fiat currencies.
The legislation was recently introduced by Senator Patrick Toomey, a member of the Senate Banking Committee. Called the Stablecoin Transparency of Reserves and Uniform Safe Transactions Act, the bill aims to regulate and adopt stablecoins in the US banking system.
In addition to the senator, US Treasury Secretary Janet Yellen hopes that stablecoins will be regulated by the country. The executive suggests speeding up the approval of such a law, and mentioned the collapse of UST as a reason for such legislation.
“A stablecoin known as TerraUSD went through a run and fell in value. It simply illustrates that this is a rapidly growing product and there are rapidly growing risks”.
Senator calls for stablecoins regulation in the US
If passed, the senator’s legislative proposal could introduce rules for platforms responsible for issuing and trading stablecoins on the market. However, the bill explains that stable price tokens will not be considered securities.
In other words, stablecoins can be classified as a means of payment in the United States. The initiative, led by Senator Patrick Toomey, will make a license mandatory for issuers of stablecoins operating in the country.
This authorization can occur through the Office of the Comptroller of the Currency (OCC), which turns stablecoin issuers into money transmitters.
Or, these platforms can obtain a standard banking license, the same one granted by the United States for financial institutions. But, on the other hand, for Janet Yellen, price-stable digital currencies should be regulated by the end of 2022.