The bill would address dividend-producing stablecoins, although it is unclear what the practical scope of the proposed regulatory regime would be.
The member of the United States House of Representatives, Tom Emmer, is preparing to introduce a bill that seeks to place some stablecoins under the supervision of the US Securities and Exchange Commission (SEC).
As reported The Block, who obtained access to a draft of a document that discusses the legislative proposal, the regulations would specifically address stablecoins that “include a dividend component” to register with the SEC.
The report details that the concept refers to “a stablecoin that distributes all or part of the income earned from the investment of the assets backing the stablecoin to holders” of said asset. However, the media highlighted that this definition is changing within the process of presenting the draft bill.
An unclear scope
According to the current language of the document, the US financial regulator. it would have to assemble and issue new rules for its supervision and examination regime on dividend-producing stablecoins. That would include requirements for the types of assets backing said stablecoins and their custody.
However, SEC supervision would not be entirely mandatory for stablecoins, even those that produce dividends, under a critical interpretation of the project. The Block points out in this regard thatSince most of the return available to stablecoin holders comes from lending or staking platforms (stake) of third parties, it is not entirely clear which and how many stablecoin projects would fit into such a regime.
As an example, remember that the holders of TerraUSD (UST) can get 20% performance on the platform Anchorwhich is operated by the same team as landbut the tokens in themselves they do not exactly distribute the investments. On the other hand, the algorithmic stablecoin ampleforth (AMPL) operates a mechanism similar to a stock split, but has no backing assets.
In any case, the regulations proposed in the bill document do not seem to apply to several of the largest stablecoins by market capitalization such as Tether (USDT), USD Coin (USDC) or BUSD, of Binance.
Emmer is crypto-friendly
The congressman has not provided information on the proposal and his team did not respond to requests for comment from The Block.
Meanwhile, the news comes at a time when US regulators are paying increasing attention to stablecoins. SEC Chairman Gary Gensler has repeatedly highlighted the need for more regulation for the market for digital currencies that promise parity with the US dollar and hold reserves in the US dollar.
Emmer, a Republican, has shown a pro-cryptocurrency stance. Two years ago the politician accepted donations in Bitcoin for his re-election campaign in Congress. More recently, sent a letter to the SEC advocating approval of an exchange-traded fund (ETF) from Bitcoin casha product that many enthusiasts in the community have been waiting for.
In January of this year, the congressman also introduced another bill which would limit the power of the Federal Reserve (FED) to issue its own central bank digital currency (CBDC).
Article by Hannah Estefanía Pérez / DailyBitcoin
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