2 mins read A bill has been introduced to US Congress with the intention of suspending stablecoins and classifying them illegal.
The bill, introduced by Democratic Party congresswoman Rashida Tlaib on Wednesday, would become The Stable Act if passed into law.
It sounds dismissive of the crypto industry, but what it seeks to do is to establish a clear-cut framework that gives the government more control over what is issued in the financial system and offered to its citizens.
Instead of banning stablecoins altogether, the bill will instead ask issuers to comply with a clear-cut framework that will include government approval and regulatory review by several authorities before any stablecoin can see the light of day in any public capacity.
The rather lengthy introduction to the bill reads as follows: “It shall be unlawful for any person to issue a stablecoin or stablecoin-related product, to provide any stablecoin-related service, or otherwise engage in any stablecoin-related commercial activity, including activity involving stablecoins issued by other persons, without obtaining written approval in advance, and on an ongoing basis, from the appropriate Federal banking agency, the Corporation, and the Board of Governors of the Federal Reserve System.”
The Crypto Community Disagrees
While in theory the bill makes sense, CoinShares chief strategy officer Meltem Demirors, among others, wasn't happy with the idea.
He argued that cryptocurrencies are known to lower the cost of servicing for the general population and should remain external from the banking system as they always have been.
Demirors argued that regulation would increase and lead to vulnerable groups being excluded from access to stablecoins.
Presently, it takes little to own or trade in stablecoins. However, should the bill pass, things may change significantly, cutting off consumers’ access to stablecoins.
Presently, consumers use stablecoins to settle transactions of various kinds, including entertainment at casino sites as Bitcasino, 1xBit, and FortuneJack.
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