US proposed to tighten oversight of stablecoin issuers

The companies that issue stablecoins will be obliged to report on their reserves

01.04.2022 - 08:00

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What’s new? House of Representatives member Trey Hollingsworth and Senator Bill Hagerty have introduced the “Stablecoin Transparency Act.” The document will set the new quality standards for stablecoins and require issuers to report on their available reserves, CoinDesk reports.

CoinDesk’s material

The situation in the stablecoin market. The volume of the stablecoin market is more than $180 billion. US Federal Reserve Chairman Jerome Powell expressed concern that digital assets, and stablecoins in particular, can pose a threat to the US financial system.

If passed, the bill will have a significant impact on stablecoin issuers such as Circle and Tether. USDC’s issuer previously refused to have its reserves audited, but the new rules may change this situation. Tether has also been hit with a class-action lawsuit, with the company being accused of “false backed” the asset.

What had happened before? On March 31, the EU voted to ban anonymous transactions. It is now mandatory for users to reveal their identity in order to make cryptocurrency transfers over 1000 EUR.

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