Summary of the Article
- The House Financial Services Committee dropped a new version of its stablecoin bill after receiving feedback from its Democratic members.
- The new version includes other parts such as the treatment of customer assets and a study on endogenously collateralized stablecoins.
- House Democrats and Republicans were divided on how to regulate stablecoins during a House Financial Services committee last month.
House Financial Services Committee Bill
The House Financial Services Committee under its Republican leadership has released a new version of its stablecoin bill after receiving feedback from its Democratic members. The bill, which is still a discussion draft, would regulate payment stablecoins specifically, and would allow state regulators to supervise stablecoin issuers, with federal regulators having a primary role by issuing capital and liquidity requirements. It defines endogenously collateralized stablecoins as any digital asset “in which its originator has represented will be converted, redeemed, or repurchased for a fixed amount of monetary value; and that relies solely on the value of another digital asset created or maintained by the same originator to maintain the fixed price.” The bill will discussed at an upcoming hearing titled “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem” scheduled for June 13.
Feedback from Democratic Members
The newer version comes after some bumps in the road between House Democrats and Republicans in that committee over the past year. After receiving feedback, the bill includes other parts such as the treatment of customer assets by firms providing custodial services and the study on endogenously collateralized stablecoins according to a committee spokesperson.