At the Bitcoin Policy Summit held at the National Press Club in Washington on April 9, Senator Kirsten Gillibrand from New York announced upcoming plans for stablecoin legislation. The goal is to align with Bitcoin‘s original intent as a practical payment option. Working together with Senator Cynthia Lummis of Wyoming, Gillibrand emphasized the importance of nurturing development and progress within the crypto sector through this legislative initiative.
What Did The Senators Say About The New Stablecoin Bill?
US Senators, including Gillibrand, emphasized that the proposed stablecoin legislation will not only foster regulatory control to exclude malicious players but also unlock the potential of cryptocurrencies as intended payment methods, recalling Bitcoin’s original goal. Last year, they reintroduced the Responsible Financial Innovation Act, which aims to create a comprehensive regulatory structure for all crypto assets.
Alternatively, the recent stablecoin law aims to grant regulatory authority to both federal and state agencies in charge of overseeing stablecoin creators. These entities can be banks or non-banking institutions, ultimately enhancing security and reliability across the sector.
Gillibrand explained that through collaboration with the Federal Reserve, Treasury, and New York State Department of Financial Services, non-depository institutions are now permitted to issue stablecoins. This approach prioritizes security and stability within the industry.
In addition, she stressed the importance of finding a middle ground. This strategy takes into account the perspectives of federal agencies, state governments, and industry players. The proposed law intends to offer regulatory certainty by establishing two separate channels for stablecoin issuers. Furthermore, it seeks to maintain states’ authority in regulating non-bank institutions, as mentioned in a Forbes article.
Senators Urge For Support From Lawmakers
Further talks are underway with the aim of securing broad support from both political parties and branches of government to move the bill forward. Senator Gillibrand underscored the need for cooperation to get the legislation passed into law. Moreover, she highlighted the importance of establishing regulatory frameworks for stablecoins as a crucial first step in unlocking the full potential of cryptocurrencies such as Bitcoin.
After pondering over the talks, Gillibrand admitted the importance of securing wider approval. This encompasses bipartisan collaboration from legislators like Chairman Patrick McHenry and Ranking Member Maxine Waters of the House Financial Services Committee. Notably, McHenry shared this perspective at the Bitcoin Policy Summit. He emphasized that stablecoins serve as a vital initial move towards all-encompassing crypto legislation in the US.
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2024-04-10 20:08