A new U.S. Congressional bill would require stablecoin issuers to secure bank charters and secure regulatory approval prior to circulating any stablecoins. U.S. Representatives Rashida Tlaib (D-Mich.), Jesús “Chuy” García (D-Ill.) and Stephen Lynch (D-Mass.) introduced the Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act on Wednesday, writing in a press release that it would focus on regulating stablecoins, naming the stablecoin of the Facebook-led Libra project (since renamed Diem) as one example. “Digital currencies, whose value is permanently pegged to or stabilized against a conventional currency l ... (full story)

Three House Democrats have unveiled a new piece of legislation focused on the regulation of stablecoins issuers and companies that provide stablecoin-related services. The draft bill, if approved, "would protect consumers from the risks posed by emerging digital payment instruments, such as Facebook’s Libra and other Stablecoins currently offered in the market, by regulating their issuance and related commercial activities," according to a statement published by the office of Rep. Rashida Tlaib. The bill would notably mandate that "any prospective issuer of a stablecoin to obtain a banking charter" and ... (full story)

To amend the Federal Deposit Insurance Act to provide for the classification and regulation of stablecoins, and for other purposes. Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, This Act may be cited as the ‘‘Stablecoin Classifica5 tion and Regulation Act of 2020’’. Congress finds the following: (1) Article I, Section 8, Clause 5 of the United States Constitution provides that Congress shall have the power ‘‘to coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures’’. (2) Section 2A of the Federal ... (full story)