The US stablecoin bill is a proposed legislation aimed at establishing a federal regulatory framework for stablecoins, which are digital assets pegged to the US dollar. Here's what we know so far :
*Key Provisions*
- *Full Backing Requirement*: Stablecoins must be fully backed on a 1:1 basis with US dollars or other high-quality liquid assets, such as Treasury bills and repurchase agreements.
- *Public Redemption Policies*: Stablecoin issuers must maintain public redemption policies and take necessary steps to ensure price stability relative to the US dollar.
- *Permission Requirement*: Issuers must get permission to legally issue stablecoins in the US and maintain 1:1 reserves backed by cash, short-term US Treasury bills, or central bank reserves .
*Legislative Progress*
- *Bipartisan Effort*: Senators Tim Scott, Bill Hagerty, Cynthia Lummis, and Kirsten Gillibrand have introduced the Guiding and Establishing National Innovation for legislation to establish a stablecoin regulatory framework.
- *Roadblock*: Negotiations have hit a roadblock amid bipartisan clash, putting the legislation in jeopardy ⁴ ¹.
*Goals and Implications*
The proposed bill aims to provide clarity and stability to the stablecoin market, which is a crucial part of the cryptocurrency ecosystem. By establishing clear regulations, the bill could help promote innovation and confidence in the market.