In a bid to check the activities of the growing crypto sector in the United States, three members of Congress have submitted a new bill. According to the details of the new bill, the congress members noted that it was drawn up to protect consumers from some major risks in the crypto sector.
The bill was drawn up by Rashida Tlaib, a Michigan Democrat, and two congressmen, Jesus Garcia and Stephen Lynch. Furthermore, the new bill will also eliminate all illegal stablecoins in the crypto market as the bill seeks to brand all non approved stablecoins as illegal.
New bill to protect low and middle-income earners
The new stablecoin bill is called the Stablecoin Tethering and Bank Licensing Enforcement Act or STABLE. According to the new act, any private entity that wishes to develop and roll out a new stablecoin would need approval from certain entities that were listed in the report.
The new bill points out that the developers need to have undergone an assessment, verification and must be granted licenses from the Federal Deposit Insurance Corporation, FED, and some other financial authority agencies. Gooing by the official release, anybody or entity that forges ahead to issue a stablecoin without the permission of the bodies listed above would face sanction. The stablecoins will be branded as illegal.
Also read:According to the party that proposed the bill, they have seen recent scams perpetrated by developers of new stablecoins. They want to be able to protect consumers in the United States from such scams. According to the congresswoman’s statement, she noted that the bill was created because they wanted to safeguard low-income traders and investors looking to earn profits in the crypto market from scams. Furthermore, the congresswomen noted that people are being forced to take risky financial decisions, and they want to be on hand to help protect their investments since the government doesn’t want to do it.
Crypto community shows displeasure at the new bill
The congresswoman also called on the government to provide adequate relief materials and legislation for low and middle-income earners across the country. The congresswoman also made it a point to mention the efforts of both congressmen in backing up her idea to make it a reality.
In her statement, the congresswoman mentioned the Facebook backed Diem project, which was previously known as Libra. Tlaib noted that despite the facebook backed project showing signs of many risks, the developers are still trying to forge ahead to exploit certain gaps in the market.
Tlaib mentioned that she had already forwarded a letter to Brian Brooks, the Acting Comptroller of the Currency, on their shabby decisions in the digital assets space. The letter also talked about certain custody of crypto and stablecoins. Reacting to the new bill, the crypto community has shown their displeasure at the new bill and has noted that the act is a discouraging step by Congress.
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