Finally, the long delayed US regulatory clarity on Stablecoins comes. The debate about the specifications is raging, but as of last week we have two drafts of bills that give us some clues about what the rules will look like.
Two competing StableCoin bills, the house’s stable bill and Senate Genius Bill, posts similar but slightly different visions for Stablecoin regulations in America.
The proposed legislative proposals follow President Donald Trump’s January 25 Executive orders, which prioritize the growth of private, dollar -supported Stablecoins while prohibiting the development of a Central Bank digital currency (CBDC).
What is the difference between the chamber and the Senate Stablecoin bills?
The two Stablecoin bills are more similar than they are different, but they differ in a few important areas. Let’s break them down.
Regulators – Genius Bill enables states to regulate payment Stablecoins up to $ 10 billion, while the Federal Reserve or Office for the Nordic Currency Controller (OCC) will regulate major issuers. The stable bill enables issuers to opt out of the federal regulation on state rules matches the same standards.
Reserves – The stable bill allows bank balances, short -term state funds, short -term scratches and central bank reserves. Genius Bill allows these, as well as money market funds and reverse scratches.
Consumer protection – Genius Bill relies on openness and enforcement to keep things honest. The stable bill requires one-to-one reserves and prohibits algorithmic stablecoins.
The two bills agree on several points: $ 100,000 per day fines for non -approved issuers, asset segregation, ban on future companies and customer funds and monthly audit and reporting.
Regardless of which bill becomes the law will be extensive and will interest to cause problems for The world’s largest StableCoin -issuer after market case.
What do the rules for Tether mean?
We have already seen how exchanges throughout the European Union will notify USDT in response to Markets in crypto assets (Mica) Regulation. The requirements regarding transparency reporting, evidence of StableCoins are fully supported and meet anti-allowance and knowledge customer (AML/KYC) rules that haunt exchanges such as Crypto.com.
Will the same thing happen in the United States? Possibly, depending on what the final Stablecoin rules look like. President Trump’s executive order only emphasized that legitimate and legal Stablecoins would be allowed to do business in America, and the two proposed bills both have strict reporting and reserve requirements. Both bills require monthly audits, which means that Tether’s certificate will not suffice.
Whatever the law of the law is the moment of truth at Bund. So far, it has refused to submit to a complete audit and claims that this would reveal its competitive advantage. It has also driven several US regulatory authorities, including Commodities and Futures Trading Commission (CFTC) and New York Attorney General (NYAG). In both cases, Tether paid significant fines and was thereafter Forbidden from New York.
Can Cantor Fitzgerald (Nasdaq: ZCFIIX) CEO reversed US Trade Secretary Howard Lutnick help? It is unlikely; He has undertaken to divest all companies where he owns shares to avoid potential conflicts of interest in his new role. It includes selling its 60% share in Cantor Fitzgerald, which has one 5% effort in Tether.
Regardless of desert Tether, it is fantastic to see regulatory clarity that comes to the world’s largest economy. So far stablecoins have been Killer -App for blockchain technologyAnd companies to be able to plan and implement with certainty can only be good.
With Elon Musk investigating how blockchain can be used to create transparency and payment stable coins that receive a pressure, it is only a matter of time before really scalable blockchain solutions are required. This may be the beginning of a new golden age of blockchain tools, just like BSV blockchain is ready for prime time.
Watch: Reggie Middleton at Defi, Booms/Busts & Crypto Regulation
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