US Rep. Josh Gottheimer Introduces Bill for Government-Backed Stablecoin Insurance
The bill would designate certain stablecoins as "qualified," making them redeemable on a one-to-one basis for U.S. dollars.
U.S. Representative Josh Gottheimer (D-N.J.) has introduced a bill that would establish government-backed insurance for stablecoins.
- The bill would designate certain stablecoins as "qualified," making them redeemable on a one-to-one basis for U.S. dollars.
- Both bank and non-bank financial institutions would issue them subject to their meeting certain conditions on reserve requirements with cash collateral held in a segregated Federal Deposit Insurance Corporation (FDIC)-insured account.
- The Office of the Comptroller of the Currency (OCC) would also have oversight of stablecoin issuers and issue rules on leverage ratios, auditing requirements, anti-money laundering/know-your-customer compliance and so on.
- As a member of the House Financial Services Committee, Gottheimer last week began circulating a draft discussion bill for enacting regulation of stablecoins.
- The Senate Banking Committee is set to meet today for its own hearing on stablecoins.
Read more: Why Stablecoin Regulation Isn’t ‘Urgent’
UPDATE (Feb. 15. 16:12): Removes link to Politico story and "report" from headline, and restructures third and fourth bullets.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.