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.

AccessTimeIconFeb 15, 2022 at 2:09 p.m. UTC
Updated May 11, 2023 at 4:34 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.

UPDATE (Feb. 15. 16:12): Removes link to Politico story and "report" from headline, and restructures third and fourth bullets.


Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.


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.