The House of Representatives delayed the bipartisan bill because of more negotiations and debates. The lawmakers proposed the bill to discuss the risks of stablecoins in the cryptocurrency markets.
Stablecoins constitute a minute part of the cryptocurrency market capitalization, but they are traded in high volumes. Investors often use stablecoins and other crypto users to migrate out of significant cryptocurrencies like; BTC, ETH, and others. The proposed bill aims to protect stablecoins owners/users’ wallets, assets, and properties.
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United States House of Rep Postpones Bill till September
The house members postponed the bipartisan stablecoins regulation bill after a vote was cast regarding the timeline. A draft of the proposed bill could not be completed and submitted by the committees.
Thereby causing the bill passing to be delayed a little to ensure further negotiation and debate. The house will treat the bill in September after they have resumed their summer holiday break. The lawmakers stated that stablecoins users are susceptible to risks of being scammed and losing their assets and coins.
Rumors emanated that the Security Exchange Commission (SEC) and Treasury departments were part of the factors causing the delay. The allegedly failed to provide necessary information regarding custodial wallets.
The bill was proposed to alleviate the issues posed by these cryptocurrencies. The bill will protect crypto users’ assets from being stolen from wallet platforms.
The house has been debating the bill for the weekend, trying to develop a harmless regulatory policy structure. However, all their effort was futile as some obstacles and pending issues had to be resolved.
An Overview of The Regulatory Framework For Stablecoins
Since the kickstart of Joe Biden’s regime as the United States president, the safety of digital assets and properties has been a priority. The lawmakers are also influential figures in making the dream come through for digital/crypto space users.
Stablecoins are being used majorly to counter the effects of volatility in significant cryptos and other digital assets. The regulatory framework will allow non-banking firms to engage in the use of stablecoins.
However, the firms must meet requirements that will be stated in the bill before they can become issuers. The policy structure also bans commercial firms from issuing stablecoins.
There are still debates regarding the bill’s extension into consumer protection by the Treasury department. The Treasury department General Secretary, Yellen Janet, stated that the lawmaker is negotiating and making inquiries with the department board officials.
She stated that protecting investors has been one of the significant talks and debates. Speculations that the proposed bill and negotiation were triggered by an announcement from a high-profile crypto company, Coinbase.
The crypto company alleged that users’ assets and properties were susceptible if the crypto platforms went bankrupt or froze their accounts.
After the lawmakers resume their summer holiday, there will be a mark-up session, where the bill will be discussed. The lawmaker chairman, Maxine W., will propose the bill to the house for approval and possible enactment.