#USStablecoinBill US advances in stablecoin regulation with new bipartisan bill
The US Congress has introduced a bipartisan bill aimed at establishing a clear regulatory framework for stablecoins issued by private entities, such as USDC and USDT. This legislation is seen as an important step in providing legal certainty to the crypto sector.
Key points of the bill:
Only authorized institutions will be able to issue USD-backed stablecoins.
It requires verifiable 1:1 reserves and periodic audits.
It prohibits algorithmic stablecoins without tangible backing.
The SEC and the Federal Reserve will work together with a new digital financial oversight body.
Sector reactions:
Circle (issuer of USDC) and Coinbase have expressed their support.
Tether remains silent for now.
Some crypto advocates warn about excessive centralization.
Notable quote:
"This law will ensure that stablecoins are safe and useful without stifling innovation." — Patrick McHenry, Republican congressman
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