MarketsUS Draft Law Could Ban Stable Cryptocurrencies

US Draft Law Could Ban Stable Cryptocurrencies

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Leaders of the House Financial Services Committee continue to negotiate the terms of a proposed bill to regulate digital currency, even as the window for action toward the midterm elections narrows.

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This is according to the Foundation Bloombergthe latest draft legislation bans algorithmic stablecoins such as Coin TerraUSD (UST) for two years, while regulators conduct a study of (internally secured) tokens.

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“Internally secured” means that it is something that is produced or manufactured within the object or system. All this before my coin explodes Tera Usd And the Luna In May 2022whose creators relied on a thief or burn algorithm color To maintain the stability of the value Tera Usd when 1 dollar.

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And after I evaporated more than 40 A billion dollars of the market value of digital currencies within days, as the collapse became a clear example for critics of dealing with digital currencies, which increased the interest of lawmakers and regulators.

Previous issues of coins required stablecoin issuers to maintain a liquid reserve of 1:1 For all the stablecoins in circulation and also it was necessary to limit the types of assets they could support.

The stablecoin rules now provide a clearer path for banks and other financial institutions to issue stablecoins, working with their existing network of regulators. But this network will now also include state-level regulators, providing state-approved stablecoin issuers with a fast track for a period of time. 180 One day to get the green light from the Fed.

The Business News Service says the committee may put the bill to a vote as soon as next week.

The stablecoin bill has been in the works for months and has been delayed in the last period, in part due to concerns raised by the treasury secretary. Janet Yellen Janet Yellen. Yellen was repeatedly martyred for the collapse Tera Usd When she called for more regulation of the crypto space.

Likewise, the deputy Waters He highlighted the risks of stablecoins earlier this year, saying:

“Investigations have shown that many of these so-called stablecoins are not actually fully backed by reserve assets, and that a lack of investor protection can threaten the financial stability of the United States.”

Source: Crypto Arabia

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William
William
I am a news writer at 24Happenings, where I help promote and write about events that matter to young professionals. I have worked in media for over a decade, most recently as an anchor in a small town in upstate New York. In my spare time, I like to read, cook simple meals, and watch DirecTV originals.

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