- US legislation could impose a two-year ban on the algorithmic stablecoin.
- Bloomberg obtained a copy of the bill being drafted.
- Committee members work to reach an agreement.
Bloomberg reported that US legislation could impose a two-year ban on coins similar to TerraUSD, the algorithmic stablecoin. Bloomberg has obtained a copy of the latest version of the bill, which makes it illegal to create or issue new “internally guaranteed stable currencies.”
broke down! The US House proposes a two-year ban on algo-based stablecoins like $UST!
– Lark Davis (@TheCryptoLark) September 21, 2022
The bill that was drafted would allow the Treasury to consult with the Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Securities and Exchange Commission (SEC) to conduct a study on algorithmic stablecoins.
The article further states that House Financial Services Committee Chair Maxine Waters (NYSE:) and rated member Patrick McHenry have been working to reach an agreement on stablecoin legislation.
Although people familiar with the discussions said it was unclear whether McHenry, a Republican, had approved the latest draft. The terms of the proposal can still be changed before the final version is released.
The upcoming bill will enable banks and non-banking institutions to issue stable currencies. Bank issuers will seek approval from typical federal regulators.
The legislation prohibits companies from mixing customer funds, including stablecoins, private keys and cash, with company assets to protect consumers in the event of bankruptcy.
The draft bill would also allow the government to study the potential impact of the US digital dollar, also known as a central bank digital currency (CBDC), including potential impacts on the financial system and banking sector, as well as on Americans’ privacy. .
However, the bill that was drafted has not been released to the public.
An upcoming US bill that could ban the Stablecoin algorithm first appeared in Coin Edition.