A US official, Senator Pat Toomey, introduces a stablecoin TRUST Act to the house two months after announcing his retirement. The Republican politician wants to see the legalization of stablecoins as a payment system in the US.
Details about the bill show that the stablecoin TRUST (Transparency of Reserves and Uniform Safe Transactions) Act would enable the development of a stablecoins regulatory framework by Congress. This is not the first digital asset bill introduced by the retiring senator who introduced a similar act in April.
Further breakdown of the Act revealed that issuers of stablecoins would operate with a more standard procedure, such as declaring the assets that back their stablecoins. At the same time, holders’ privacy will be upheld by Bank Secrecy Act standards, with the exception of transactions connected to new digital assets.
No Securities and Exchange Commission, no Commodities Futures Trading Commission (CFTC), and co-sponsors of the stablecoins TRUST Act
If the bill pulls through, it means that the regulation of stablecoins will be taken away from the Securities and Exchange Commission and the Commodities Futures Trading Commission (CFTC). In addition, stablecoins will not be regarded as securities as their issuers will not be regulated as investment advisors or companies.
The proposing senator suggested a new federal license for “payment stablecoin issuers” will be created. He added that this new system would be managed by the Office of the Comptroller of the Currency (OCC) – the organization that regulates traditional banks and savings institutions.
Apart from Senator Pat, other senators that supported the Act include Republicans Senators Cynthia Lummis of Wyoming and Thomas Tills of North Carolina and Senator Elizabeth Warren of Massachusetts, a Democrat.
Sen. Pat Toomey’s long-term support for digital asset
In the wake of the FTX saga, Sen. Pat spoke out alongside his colleagues on the news to address the situation. However, he advised that neither digital assets nor cryptocurrency are the enemy. Poor management on the side of the handlers is the reason behind the collapse of FTX, the senator explained.
In another conversation with his colleagues, he said, “In our discussion of FTX today, I hope we can separate potentially illegal actions from perfectly lawful and innovative cryptocurrencies.” Senator Pat has also opposed the standpoint of Gary Gensler, the SEC commissioner, who said that cryptocurrencies are securities.
“I hope this framework lays the groundwork for my colleagues to pass legislation next year safeguarding customer funds without inhibiting innovation,” Senator Pat said.
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US Fed Chair, Powell Advocates for more regulation on Stablecoins
US Treasury to Allow Banks use Blockchains, Stablecoins for Payments
