U.S. lawmakers including Rashida Tlaib, Jesus Garcia, and Stephen Lynch have just introduced a new bill. The new bill is meant to protect the consumers from all the risks associated with the huge growth in the U.S. crypto market. Under the bill, all the stablecoins that have not received proper approval from government bodies will become irrelevant. U.S. lawmakers introduce the bill, Stablecoin Tethering and Bank Licensing Enforcement (STABLE) act, especially for the protection of customers against crypto scams.
US Lawmakers Introduces Bill That Mandates Stablecoins Issuance
The stablecoin issuers need to get the approval from Federal Deposit Insurance Corporation (FDIC) along with other banking bodies. The official press release states that all the stablecoins issuance need to get approved from the authorities otherwise they will be considered illegal. The main aim is to protect the U.S. based customers from crypto scams.
According to one of the U.S. lawmakers:
“From the OCC to the Federal Reserve to those peddling stablecoins, the protections the STABLE Act would make possible are more needed than ever amid a pandemic that will breed riskier financial decisions out of necessity because our federal government continues to fail us all by not providing adequate reliced legislation.”
Facebook’s Diem Project Under Target
As the U.S. lawmakers are introducing a new bill, their main target is Facebook’s Diem project which is popularly known as Libra. They believe that this project is associated with some huge risks which need some major regulatory measures. This new bill is set to cover all those stablecoin projects that are associated with this type of risk. Although this bill is to protect the users from risks, the whole crypto community is quite disappointed with this bill. The community has named this act as a complete discouraging one.