US lawmakers have introduced a new bill to Congress which seeks to impose federal control over the entire stablecoin industry and would mandate token issuers to secure bank charters.
United States Representatives Rashida Tlaib (D-Mich.), Jesús “Chuy” García (D-Ill.) and Stephen Lynch (D-Mass.) introduced the Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act on Wednesday, Dec. 2. The new US congressional bill would require stablecoin issuers to secure federal approval and secure bank charters in order to circulate their tokens.
The official release cites the need to regulate stablecoins and cites Facebook’s Libra project as its main example. Unrelated, the Facebook Libra project was recently renamed to Diem. The release reads:
“Digital currencies, whose value is permanently pegged to or stabilized against a conventional currency like the dollar, pose new regulatory challenges while also represent a growing source of the market, liquidity, and credit…