Benzinga - In a groundbreaking move, the U.S. House Financial Services Committee has unveiled a bipartisan draft bill addressing stablecoins, as part of a broader effort to shed light on the regulation of the digital asset landscape.
The hearing titled, “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem,” is set for June 13.
The draft legislation, which is the third iteration, amalgamates elements from both the Republican and Democratic sides of the committee.
The core objective is to lay down regulatory parameters for payment stablecoins, among other concerns.
The bill outlines the roles and responsibilities of primary Federal payment stablecoin regulators, which include the Comptroller of the Currency, the Federal Reserve, the FDIC, and the National Credit Union Administration.
Furthermore, the draft covers an array of aspects including stipulations on who can issue payment stablecoins, regulatory requirements for stablecoins, supervision, enforcement, and interoperability, while also bringing clarity on state-level matters.
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A notable point in the draft bill is the proposed two-year ban on the issuance of any endogenously collateralized stablecoin not existing prior to the enactment of this legislation.
In addition, the draft suggests amendments to the Investment Advisers Act of 1940, explicitly stating that payment stablecoins do not fall under the category of “securities.”
This amendment would grant federal agencies a higher degree of authority over stablecoins, compared to state regulators.
The draft also seeks to demarcate the jurisdictional boundaries between the SEC and CFTC in the crypto arena.
The Digital Asset Market Structure Discussion Draft designates the SEC’s purview over digital assets offered within an investment contract, whereas the CFTC will oversee the digital commodity spot market.
The hearing will host a distinguished panel of witnesses, such as Circle (CRYPTO: USDC) CEO Jeremy Allaire, Steptoe & Johnson LLP partner Coy Garrison, Ava Labs CEO Emin Gün Sirer, and National Futures Association president Thomas Sexton III.
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