#USStablecoinBill The US stablecoin bill is a proposed legislation aimed at regulating stablecoins, digital tokens pegged to the US dollar. Two bills are currently under consideration:

- *GENIUS Act*: Introduced in the Senate, this bill requires stablecoin issuers to be licensed and supervised by federal or state regulators. However, it has been criticized for its foreign issuer loophole, which doesn't adequately regulate offshore stablecoin issuers.

- *STABLE Act*: Introduced in the House, this bill also requires licensing and supervision but provides an 18-month grace period for offshore issuers to comply. Critics argue it doesn't provide clear enforcement mechanisms and sufficient penalties for noncompliance.

*Key Concerns:*

- *Consumer Protection*: Senator Elizabeth Warren argues that the current bills lack basic consumer protections, inviting scams and illicit activities.

- *National Security*: The bills are criticized for not adequately addressing national security concerns, such as sanctions evasion and terrorism financing.

- *Financial Stability*: Stablecoin issuers investing in risky assets could lead to financial instability and potential bailouts.

*Proposed Improvements:*

- *Close Foreign Issuer Loophole*: Regulate offshore stablecoin issuers to prevent regulatory arbitrage.

- *Enhance Treasury Department Authority*: Grant broader authority to address illicit finance concerns.

- *Balance State and Federal Authority*: Ensure joint federal-state supervision of large issuers.

- *Limit Affiliate Activities*: Restrict activities of stablecoin issuer affiliates to prevent financial contagion.

- *Specialized Bankruptcy Procedure*: Establish a resolution procedure for insolvent stablecoin issuers.

- *Strengthen Consumer Protections*: Include provisions for disclosure, settlement procedures, and dispute resolution ¹ ².