We must provide greater direction and confidence to the industry for cryptocurrency to flourish and prosper, Josh Gottheimer said. Josh Gottheimer has proposed legislation that allows the FDIC to support stablecoins in a way comparable to fiat investments.
According to Gottheimer’s suggested legislation, stablecoins supplied by authorized deposit accounts or select nonbank issuers would be referred to as certified stablecoins. Underneath this meaning, the bill says eligible stablecoins aren’t securities or commodity markets in the United States. They can be redeemed from the issuer at any time from the issuing bank.
When stablecoins are made by businesses that aren’t banks, the FDIC will have to set up a QSIF to make sure eligible stablecoin holders could exchange their cryptocurrencies for United States dollars at any time. In Gottheimer’s words, the bill is meant to protect people who own stocks from systemic danger, embezzlement, and illegal financing.
The growth of cryptocurrency has enormous prospective significance for our economic system, says the author Gottheimer. However, for cryptocurrency to flourish in the US rather than elsewhere, we need to supply the industry with more guidance and stability to help stimulate innovation and safeguard consumers.
His continued advancement in the cryptocurrency industry should not be stifled. We must ensure that the necessary policies are set up and that our country remains a global leader in advanced financial technologies.
Aside from the insurance criteria, the Office of the Comptroller of the Currency would essentially have administrative responsibility for stablecoin issuers, determining standards and regulations. The SEC and the CFTC aren’t precluded from scrutinizing non-qualified digital assets and other cryptos within the bill, according to Gottheimer.
The Bill’s Stance
The Blockchain Association and Digital Chamber of Commerce, among other cryptocurrency advocacy organizations, have stated their backing for the bill. According to Teana Baker Taylor, chief policy officer at the Digital Chamber of Commerce, this legislation will make it easier for existing stablecoin arrangements and new entrants to compete while also setting the United States on its way to a more defined regulatory framework for digital assets.
Upon President Biden’s signature, the stablecoin measure will become legislation after a year if the House and Senate adopt it. The Senate Banking Committee will also schedule hearings on Tuesday to look into the President’s Working Group on Financial Markets’ analysis on stablecoins, launched in November last year.