Congress Could See Stablecoin Bill by End of March

Multiple contending costs might be presented to Congress in the coming weeks.

Key Takeaways

• Competing costs worrying the policy of stablecoins and their reserves might be presented in Congress this month.
• Representative Josh Gottheimer produced an earlier draft of the expense, likewise intended at controling reserves, this February.
• The objective of the costs is associated to the President’s Working Group on Financial Markets (PWG) and past Tether debates.

A costs regulating stablecoins within the U.S. might be presented as early as this month, according to a report from Blockworks.

Bills Could Be Introduced This Month

An confidential source has reportedly informed Blockworks that completing variations of a U.S. stablecoin guideline costs might be presented by the end of this month.

U.S. Representative Josh Gottheimer produced an early draft of the expense in February. That draft proposed a “qualified” meaning that would use to stablecoins released by banks and other organizations.

The objective of the expense appears to be associated to a report on stablecoins from the President’s Working Group on Financial Markets (PWG). Among other things, that workgroup recommended that stablecoin providers oughtto be managed by the Federal Deposit Insurance Corporation (FDIC), simply as banks are presently managed.

Though there is apparently some difference over the assistance consistedof within the costs, it is stated that the expenses’ material will usually issue stablecoin reserves.

Bill Could Avoid Tether-Like Problems

Currently, stablecoins can be released by any organization or group with extremely littlebit regulative oversight from the United States.

Tether, which concerns the USDT stablecoin, hasactually been inspected roughly by regulators. In Oct. 2021, Tether was fined by the CFTC for misrepresenting its reserves. Tether and its sibling business Bitfinex were targeted by the New York Attorney General’s workplace in 2019 for presumably covering up missingouton funds.

Ron Hammond of the Blockchain Association informed Blockworks that the upcoming costs mostlikely intends to “prevent another scenario like Tether” by needing audits of stablecoins companies and by clarifying which properties can be utilized in stablecoin reserves.

The expense might likewise pave the method for the advancement of a main bank digital currency (CBDC) somewhereelse in the U.S. federalgovernment. The Federal Reserve produced a CBDC report in January.

Disclosure: At the time of composing, the author of this piece owned BTC, ETH, and other cryptocurrencies.

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Members of Congress Introduce “E-Cash” Bill

Key Takeaways

• Congressional Representatives have introduced a bill that call upon the Treasury to prepare a digital dollar E-Cash.
• E-Cash is meant to preserve privacy and operate without needing access to the Internet.
• The bill is co-sponsored by Democrats, though the legislation appears to address certain concerns of Republican lawmakers.

Representative Stephen Lynch (D-MA) has introduced the Electronic Currency and Secure Hardware (ECASH) Act. It is a bill that, among other things, directs the Treasury Secretary to make a “retail digital dollar called ‘e-cash.’”

E-Cash Directive

Members of the U.S. House of Representatives are calling upon the Treasury to release a digital dollar, rather than the nation’s central bank. 

The ECASH Act, introduced by Rep. Lynch, is co-sponsored by other Democrats in the Committee on Financial Services, including Jesús G. “Chuy” Garcia (D-IL), Rashida Tlaib (D-MI), Ayanna Pressley (D-MA), and Alma Adams (D-NC). The act would mandate that the Secretary of the Treasury, Janet Yellen, prepare a digital dollar for individuals called e-cash. 

E-Cash is meant to emulate physical dollars, which can be operated without the Internet and which theoretically preserves privacy, unlike many central bank digital currency proposals. The Treasury would coordinate with the necessary government agencies on the digital dollar, such as the Federal Reserve. This coordination would be conducted via the Digital Dollar Council, which the Treasury Secretary would head. 

The bill’s passage would also create an Electronic Currency Innovation Program as part of the Treasury. This program would research and create various forms of the necessary infrastructure for the digital dollar, like hardware wallets that would hold e-cash. 

A Monetary Privacy Board would also be instituted by the Act. This would be an independent group tasked with ensuring the government’s due diligence with respect to privacy preservation and civil liberties protection. For example, open-source software and hardware should be prioritized when possible, the bill writes. 

Finally, the bill would establish an account at the Federal Reserve Bank of New York to fund the e-cash program, and it calls upon the Fed’s Board of Governors to manage the liquidity of the overall monetary system so that banks and other existing financial institutions face minimal disruption. 

The bill emphasizes the importance of extending financial inclusion (e.g. citing the Community Reinvestment Act of 1977), as well as to promote the general innovation possible from digital assets. 

E-cash’s creation and issuance would not preclude the possibility for a CBDC to be made in parallel, something the Federal Reserve has been researching. Many other nations such as Mexico, England, Canada, Ukraine, Malaysia, Brazil, Ghana, and others have conducted similar research as well. 

Across the aisle, the Republican representative Tom Emmer introduced a bill last January that would check the Fed’s powers in regard to a central bank digital currency. One of Emmer’s concerns pertained to privacy, and so perhaps there is room for bipartisan support of the ECASH Act introduced today. 

The current Treasury Secretary, Janet Yellen, has uttered harsh remarks on crypto before, though last week she seemed to soften her stance.

President Biden signed an Executive Order earlier this month that included mandates on CBDCs. 

Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and several other cryptocurrencies. 

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

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Congress Members Challenge SEC Over Crypto Probes

Congressman Tom Emmer (R-MN) posted a screenshot of a bipartisan letter sent to Gary Gensler discussing the SEC’s requests for information from the crypto community.

Key Takeaways

• Eight members of U.S. Congress have written to Gary Gensler to ask about the SEC's information requests to crypto firms.
• Congressman Tom Emmer (R-MN) said that he had received tips from multiple crypto firms that the SEC was "stifling innovation."
• Crypto regulation has been a hot topic of discussion this month after President Biden signed the first Executive Order on handling digital assets.

Emmer accused Gensler of “stifling innovation” after receiving tip-offs from multiple crypto projects and wrote to him in a bipartisan letter with other members of Congress. 

Congress Members Question SEC’s Crypto Requests

Multiple members of U.S. Congress have written to Gary Gensler over the SEC’s efforts to obtain information from cryptocurrency firms. 

A letter shared by Congressman Tom Emmer (R-MN) Wednesday challenges Gensler over the U.S. agency’s recent attempts to “gather information from unregulated cryptocurrency and blockchain industry participants in a manner inconsistent with the [SEC’s] standards for initiating investigations.” 

The letter posed 13 questions to Gensler, and was signed by both Democrats and Republicans, including Emmer, Rep. Darren Soto (D-FL), Rep. Warren Davidson (R-OH), Rep. Jake Auchincloss (D–MA), Rep. Byron Donalds (R–FL), Rep. Josh Gottheimer (D–NJ), Rep. Ted Budd (R–NC), and Rep. Ritchie Torres (D–NY).

The letter asked how many document requests the SEC had made to individuals and entities in the digital assets space over the last five years, the length of time given for responses to information requests, whether any entities have declined to give any information (and faced penalization), how much time had been spent on information requests to the crypto space relative to other industries, and other questions to ascertain how the SEC is looking into the digital assets sector. 

My office has received numerous tips from crypto and blockchain firms that SEC Chair @GaryGensler’s information reporting “requests” to the crypto community are overburdensome, don’t feel particularly… voluntary… and are stifling innovation.

— Tom Emmer (@RepTomEmmer) March 16, 2022

In a tweet storm accompanying the screenshot of the letter, Emmer said that he had opted to send the letter after receiving “numerous tips” from crypto companies that the SEC’s information requests are “overburdensome” and place pressure on teams to comply rather than coming across as a voluntary procedure. He also said that he had been told the SEC was “stifling innovation.” 

“Crypto startups must not be weighed down by extra-jurisdictional and burdensome reporting requirements,” Emmer wrote. “We will ensure our regulators do not kill American innovation and opportunities.” 

Crypto regulation has become a key point of focus for the U.S. over the last year as the digital assets space has boomed, not least this month. Last week, President Biden signed an Executive Order on handling crypto assets in which the White House pledged to foster innovation and protect investors. Gensler weighed in on the order at the time, saying that he looked forward to collaborating with the government and would focus on “protecting investors & consumers, guarding against illicit activity, & helping ensure financial stability.” 

Neither Gensler nor the SEC had publicly commented on the bipartisan letter at press time. 

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies. 

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

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