#USStablecoinBill
Title: U.S. Stablecoin Bill: Navigating the Path to Regulation
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đ Introduction
The U.S. Congress is actively working on legislation to regulate stablecoins, aiming to establish a comprehensive framework for their issuance and use. This move comes in response to the growing adoption of digital assets and the need to ensure financial stability and consumer protection.
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đď¸ Legislative Developments
Two primary bills are under consideration:
1. GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins): Introduced in the Senate, this bill seeks to regulate stablecoin issuers, particularly those with market caps over $10 billion, under Federal Reserve oversight. Smaller issuers could opt for state-level regulation.
2. STABLE Act (Stablecoin Transparency and Banking Licensing Enforcement Act): This House bill proposes stricter federal oversight, requiring all stablecoin issuers to obtain banking charters and comply with anti-money laundering regulations.
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âď¸ Key Provisions and Debates
Issuance and Collateralization: Both bills mandate that stablecoins be backed by safe, liquid assets like U.S. Treasuries to ensure stability.
Interest Payments: The House bill prohibits interest payments on stablecoins, while the Senate version is less definitive. This discrepancy has sparked debates about consumer benefits versus potential risks to the financial system.
Exemptions for Foreign Issuers: The House bill includes a two-year exemption for fo