Steps to regulate stablecoins: new bill from Kirsten Gillibrand
Date: 2024-04-11 Author: Henry Casey Categories: BLOCKCHAIN
Senator Kirsten Gillibrand teamed up with Wyoming Senator Cynthia Lummis to co-author legislation to regulate stablecoins. Experts from the Federal Reserve System and the New York State Department of Financial Services were involved in the process of creating the law.
Compromise and balance of interests
The new bill represents a common sense compromise that takes into account the interests of federal and state authorities, as well as cryptocurrency market participants. According to the senator, this legislation will stimulate innovation in the digital asset industry.
Main provisions of the bill
The law provides for the possibility of issuing stablecoins for depository, financial and non-banking institutions after approval by government agencies. The federal authorities receive a dominant role and supervisory powers over institutions, while maintaining the role of the main functional regulator for the states.
Consequences of the law
The adoption of this law will not only unlock the potential of the digital asset industry, but will also create conditions for the integration of Bitcoin into the US financial system. This step will be important for the development and stabilization of the cryptocurrency market.
Last year, Kirsten Gillibrand and Cynthia Lummis already joined forces to work on bills aimed at improving the regulation of cryptocurrencies. Their joint efforts made it possible to make a significant contribution to the development of legislation in this area.
