Home Info Newsroom Draft Bill Lets Nonbanks Issue Stablecoins, Bans Algorithmic Coins for Two Years

Draft Bill Lets Nonbanks Issue Stablecoins, Bans Algorithmic Coins for Two Years

Authored By: Lewis Wood on 9/21/2022

Nearly finalized legislation between Democrats and Republicans on the House Financial Services Committee would authorize the Federal Reserve to license nonbank stablecoin issuers and introduce a two-year moratorium for algorithmic stablecoins. 

House lawmakers have worked behind the scenes for months in an effort to create a bipartisan legislative framework for stablecoins, a type of digital asset designed to maintain consistent value  in order to facilitate cryptocurrency transactions. 

The latest draft is the product of weeks of back-and-forth between Democrats and Republicans. The legislative text, reviewed by American Banker on Tuesday night, was drafted by the office of House Financial Services Chair Maxine Waters, D-Calif., and reflects negotiations with ranking member Patrick McHenry, R-N.C.  It remains unclear whether McHenry will support the latest draft. Representatives for McHenry and Waters did not immediately respond to a request for comment, but McHenry told Politico that he was "cautiously optimistic" that an agreement could be reached by the end of the 117th Congress.

Related: Draft House bill not to limit banks' authority to issue tokenized deposits

  • Share:


« Return to "VACUL Headlines" Go to main navigation