The United States plans to introduce new regulations on stablecoins! Both the Democratic and Republican parties have proposed bills, with the focus on who will have regulatory authority.

Currently, the U.S. Congress is accelerating discussions on how to regulate Stable Coin (Stablecoins) and related bills linking coins to the U.S. dollar. Democratic and Republican members of the House Financial Services Committee (House Financial Services Committee) have proposed different versions of regulatory drafts, with the core dispute revolving around whether regulation should be led by the 'federal government' or 'state governments'. In addition, the Senate is also preparing relevant bills, and the battle over Stable Coin regulation has entered a heated phase.

Democratic Party lawmaker Waters proposed a regulatory bill, emphasizing the role of federal regulatory agencies

Maxine Waters, a Democratic member of the US House of Representatives and former chair of the HFSC, announced a draft discussion on the regulation of stablecoins on 2/5. The key points of the draft are as follows:

Regulatory agencies will include the U.S. Office of the Comptroller of the Currency (OCC), the Federal Reserve (FED), the Federal Deposit Insurance Corporation (FDIC), and state-level regulatory agencies.

Stablecoin issuers must register legally and prepare reserves in a ratio of at least 1:1 to ensure that Stable Coins have sufficient asset support.

The picture shows the Democratic Party's proposal for regulatory legislation.

Waters has previously collaborated with Patrick McHenry, the former chairman of the Republican-led Financial Services Committee, to discuss regulatory frameworks. However, she is dissatisfied with the provision in the Republican version of the bill that allows state governments to independently approve the issuance of Stable Coins, and believes that it should be subject to the review authority of the FED. However, Waters' office has not yet issued a formal response to this draft, and it is currently still under discussion.

Republican version, authorized OCC to regulate non-bank payment stablecoin

Just a week before Waters released the draft, at the end of January, Republican congressmen French Hill and Bryan Steil also jointly proposed a different version of the Stable Coin regulation bill. The following are the main differences of the Republican draft:

Emphasize that the issuance of non-bank payment Stable Coin is regulated by the coin supervision agency (OCC), not by the FED.

It is believed that a federal review channel should be established to ensure compliance with national standards, but not rely solely on the supervisory authority of the FED.

The picture shows the regulatory draft of Stable Coin implemented by the Republican Party.

This draft is similar to Waters' proposal in core concept, but there are key differences in the allocation of regulatory power.

The Senate also took action, drafting a bipartisan regulatory framework.

Not only the House of Representatives is promoting the bill, but the Senate is also discussing related matters. For example, Republican Senator Bill Hagerty of Tennessee has proposed the "US Stable Coin Innovation and Regulation Act" (Guiding and Establishing National Innovation for US Stablecoins).

Hagerty also held a press conference on 2/4 to announce the establishment of the "Cryptocurrency and Stablecoin Regulatory Task Force," with members from the House Financial Services Committee, Senate Agriculture Committee, House Agriculture Committee, and Senate Banking Committee, showing bipartisan congressional concern on this issue.

This means that the Senate will coordinate with the Democrats and Republicans in the House of Representatives to find a regulatory framework that can garner majority support.

Stable Coin is led by the federal or state government as a regulatory focus.

The biggest controversy of the Stable Coin regulation bill is whether it should be fully regulated by the federal government, including the FED, OCC, and FDIC, advocated by the Democratic Party to ensure uniform standards and reduce financial risks, or whether it should be allowed to be issued by state governments to increase market flexibility, which is advocated by the Republican Party.

Currently, it appears that the Democratic Party tends to be regulated by the federal government, while the Republican Party supports greater regulatory autonomy for state governments, but the final regulatory framework may be balanced through congressional negotiations.

(FED on Digital Coin and the Future of Payments: Stablecoin Will Consolidate the Dominance of the US Dollar, No Need to Force CBDC)

This article proposes a new law for regulating Stable Coin in the United States! Both the Democratic and Republican parties have submitted draft bills, focusing on who will have regulatory authority. Originally appeared in Chain News ABMedia.