Senator Pat Toomey published draft bill to regulate stablecoins

It introduces a new concept of “payment stablecoin,” which can be legally exchanged for fiat currency

08.04.2022 - 07:00

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What’s new? On April 6, Pennsylvania Senator Pat Toomey published a draft bill on the regulation of stablecoins for public discussion. The document was called “Stablecoin Transparency of Reserves and Uniform Safe Transactions Act.” . Its collateral must be limited to assets “that are cash and cash equivalents or level 1 high-quality liquid assets denominated in United States dollars.”

Senator’s draft bill

What does the bill say? Payment stablecoin issuers would be able to operate under one of three separate licensing regimes. These are traditional banking licenses, an official authorization for payment stablecoins, and the right to transfer money between state-by-state. In addition, the draft bill provides for disclosure of stablecoin backing and its redemption policy, as well as regular attestations.

What had happened before? In December, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing on the topic “Stablecoins: How Do They Work, How Are They Used, and What Are Their Risks?”

In April, the head of the US Securities and Exchange Commission (SEC), Gary Gensler, stated that oversight of cryptocurrency exchanges and issuers of stablecoins should be strengthened.

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