US Legislator Introduces Bill to Manage Payment Stablecoins

A U.S. senator has introduced a bill to “establish the primary federal restrictive framework for payment stablecoins.” The lawmaker explained: “This bill also will make sure the Fed, that has displayed vital skepticism regarding stablecoins, won’t be in a position to prevent this activity.”

Stablecoin TRUST Act of 2022

U.S. senator Pat Toomey (R-PA), ranking member of the Senate Committee on Banking, Housing, and concrete Affairs, introduced the “Stablecoin Transparency of Reserves and Uniform Safe Transactions Act of 2022” on Wed. The bill is additionally referred to as the “Stablecoin TRUST Act of 2022.”

According to the lawmaker, the legislation would “establish the primary federal restrictive framework for payment stablecoins and guide Congress towards a path for smart regulation of cryptocurrencies.” senator Toomey opined:

I hope this framework lays the groundwork for my colleagues to pass legislation next year safeguarding client funds while not inhibiting innovation … This bill also will make sure the Federal Reserve, that has displayed vital skepticism regarding stablecoins, won’t be in a position to prevent this activity.

“Stablecoins are an exciting technological development that might rework cash and payments. By digitizing the U.S. greenback and creating it accessible on a world, instant, and nearly cost-free basis, stablecoins can be wide used across the physical economy during a form of ways in which,” Toomey noted. The lawgiver from Pennsylvania are going to be retiring from the Senate at the tip of his term in Jan next year.

The bill “encourages competition by authorizing many sorts of regulated entities to issue payment stablecoins,” the Senate Committee on Banking, Housing, and concrete Affairs delineated , adding that it “enhances money stability by requiring that each one payment stablecoins ar absolutely backed by high-quality quick assets.” moreover, the bill “establishes transparency by subjecting all payment stablecoin issuers to standardized speech act necessities and attestations by registered accounting companies,” the Senate committee more elaborated.

Toomey published a draft of this Stablecoin TRUST Act back in April, calling it “the first Senate bill to establish a comprehensive regulatory framework for payment stablecoins.”

The senator from Pennsylvania is pro-crypto. Last week, he said cryptocurrency cannot be stopped and that the collapse of crypto Exchange FTX is not an indictment against cryptocurrency. In February, the lawmaker said crypto assets are here to stay and a thoroughly diversified portfolio should have some.

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