US forces stablecoins to be backed by assets?

by nativetechdoctor
2 minutes read

According to a new draft of the US government’s stablecoin law, stablecoin issuers must have ample assets to back them up, and these assets must be highly liquid.

Recently, the US government is particularly interested in building and adjusting the legal framework to control crypto-currency with a safe and sustainable corridor. Most recently, Maxine Waters, Member of the House of Representatives, and Patrick McHenry, a member of the US Republican Party, jointly developed a draft bill specifically for stablecoins .

built after the collapse of LUNA/UST , this new draft law states that stablecoins need to be backed by highly liquid assets (easily liquidated when needed), like cash or US Treasury bills – assets that are hard to fluctuate. This is information that has not been publicly announced, but leaked by reputable inside sources.

According to leading news agencies, if this source is true, it is very likely that the House of Representatives will easily approve. However, in order for a bill to be unanimous, the bill must be universal.

Once bicameral adopts crypto-currencies, it will be more widely accepted because there are clear regulations. However, stablecoin issuers will be subject to stricter regulation by the watchdog to be able to operate in the US.

According to leaked sources, the draft stablecoin law also proposes to ban commercial companies from issuing stablecoins, which means that companies like Apple , Meta (former Facebook) or Amazon will not be able to participate directly in the field. this area.

In the wake of the wave of tightening control of stablecoins after the collapse of the UST around the world in general, and the leaked news of the US draft stablecoin law in particular, Tether said that it would reduce the rate of re-holding commercial paper and would rent an application. leading auditor to demonstrate the escrowability and liquidity of collateral assets for TetherUSD (USDT).

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