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.
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