Stablecoin Licensing Act Sent to US Congress

US congressmen will consider a draft law that would oblige stablecoin issuers to obtain special permission to issue such assets. The corresponding document has already been sent to the US legislature. According to the developers, it will allow regulating new payment instruments.

In particular, the document notes that stablecoins pose new challenges to financial institutions and their control is becoming the most important in modern realities. In addition, market participants may be exposed to liquidity and credit risks, and the government must protect them from such risks.

Currently, several large stablecoin issuing companies such as Circle, Gemini and Paxos are operating in the United States of America. As conceived by the authorities, they and similar companies will have to request a license to operate in the Federal Reserve System, the Federal Deposit Insurance Corporation and banking regulators.

It is worth noting that some representatives of the industry have already reacted critically to possible innovations in legislation. So, the head of Circle Jeremy Aller noted that the adoption of a new regulation will become a barrier to the development of technologies such as blockchain, as well as the emergence of new financial solutions.