Regulation Coming To Stablecoins From The U.S.
The new STABLE law could easily turn into a nightmare for stabilcoin businesses in the United States, as it will bring stablecoins closer to the banking ecosystem rather than the tech world.
On December 2, 2020, Congressman Rashida Tlaib, along with Representative Jesus “Chuy” Garcia and Representative Stephen Lynch, introduced the new stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act, a law that essentially concerns all stabilcoin issuers. By law, stablecoins such as USDT or USDC are required to have a banking contract and be licensed by many federal agencies to market.
To Be Considered As A Bank
The STABLE Act aims to protect low-income families who have invested in stablecoins, who may be forced by stablecoin companies, where they are not subject to the same conditions as banks when launching a stablecoin.
In the one-page document, “Wall St. and it’s critical not to let Silicon Valley own the future of digital payments,” the statement reads. The report cites concerns about Facebook’s efforts to develop a cryptocurrency that could compromise the stability of the financial system, and that low-and middle-income families, immigrants and non-white people would be hurt most if something went wrong.