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FED GOVERNOR: BANKS AND NON-BANKS SHOULD BE ABLE TO ISSUE STABLECOINS
Fed Governor Christopher Waller believes there should be a framework that allows banks and non-banks to issue regulated stablecoins.
According to a recent Bloomberg report, Waller stated that stablecoins have the potential to expand the reach of the U.S. dollar on an international scale. However, the scale and utility of stablecoins will depend on a clear set of regulations.
In a conference in San Francisco, Waller said the stablecoin market requires a regulatory framework that encompasses stablecoin risks “directly, fully, and narrowly” before financial institutions will be able to issue them.
“This framework should allow both non-banks and banks to issue regulated stablecoins and should consider the effects of regulation on the payments landscape,” said Waller.
Stablecoins are digital currencies known for their steady value because they are typically pegged to fiat currencies, most commonly the U.S. dollar or Treasury bills. Two of the largest stablecoins by market cap, USDT and USDC, are both pegged to the U.S. dollar.
Waller’s remarks echo those of Federal Reserve Chairman Jerome Powell in February last year. Powell expressed wholehearted support for the creation of a stablecoin framework in a meeting with the House Financial Services Committee, reiterating the Fed’s commitment to developing stablecoins and Central Bank Digital Currencies in the U.S. (However, Powell agreed there would not be a CBDC in the US during a Congressional hearing this week)
More recently, Rep. Maxine Waters, the ranking Democrat on the House Financial Services Committee, introduced a proposal for stabelcoin oversight involving the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve.
Earlier this month, Republican Chair of the House Financial Services Committee, French Hill, had submitted a draft bill for stablecoin regulation, co-sponsored by Rep. Bryan Steil. In contrast to Water’s proposal, Hill’s bill grants stablecoin oversight to the OCC instead of the Federal Reserve.
This means that both Republican and Democratic lawmakers have introduced stablecoin regulations under the Trump administration.
@ Newshounds News™
Source: Crypto News
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TEXAS LAWMAKERS REFILE BITCOIN RESERVE BILL, ADDING ROOM FOR MORE CRYPTO
The bill “would make our state the first to establish a Strategic Bitcoin Reserve and drive innovation, growth, and financial freedom,” said Senator Schwertner.
Texas lawmakers have refiled a strategic Bitcoin reserve bill under a slightly different name, opening the door to investments in other qualifying cryptocurrencies.
“SB 21 would make our state the first to establish a Strategic Bitcoin Reserve and drive innovation, growth, and financial freedom,” said Texas state Senator Charles Schwertner on Feb. 12.
He also thanked Lieutenant Governor Dan Patrick for designating his bill to establish the Texas Strategic Bitcoin Reserve “as one of the Senate’s top 40 priority bills.”
“I’ve been told by the Lt. Governor’s office multiple times that this bill is a major priority,” said Satoshi Action Fund founder Dennis Porter in a post on X.
SB 21 differs slightly from SB 778, a similar strategic Bitcoin reserve bill that the Republican politician announced in mid-January.
The earlier legislation only permits the state to buy and hold BTC as a strategic asset and prevents its use for other state operations unless explicitly authorized.
Schwertner refiled the legislation “for the purpose of investing in cryptocurrency and the investment authority of the comptroller of public accounts over the reserve and certain other state funds” on Feb. 12.
The bill establishes the reserve as an investment vehicle, allowing the state to actively buy, sell, and manage crypto assets for financial security and economic resilience.
It also permits investments in other digital assets but stipulates that they must have had a market capitalization of at least $500 billion for the past twelve months. Currently, only Bitcoin falls into this category.
SB 21 also gives more control to financial experts, while SB 778 places control in the hands of state legislators and has stricter security, oversight, and funding rules.
Riot Platforms vice president of research, Pierre Rochard, commented that the new legislative text for the Texas SBR “is very bullish,” before adding “It removes the annual buying limit of $500 million, the legislature can appropriate as much as it wants to save BTC.”
There are currently 19 US states with a bill proposed, while Arizona and Utah have advanced legislation beyond the House committee level.
The most recent state to propose a crypto bill was North Carolina, which filed for legislation this week to allow the state to invest in Bitcoin exchange-traded products. North Dakota, meanwhile, has rejected legislation regarding crypto investments.
@ Newshounds News™
Source: CoinTelegraph
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