Josh Gottheimer, a member of the House of Commons financial services and a representative of the State of New Jersey, introduced a law that would allow the Federal Deposit Insurance Corporation to support stable deposits similar to fiat deposits.
In the Stablecoin Innovation and Protection Act of 2022, which was published on Tuesday, Gottheimer proposed to label stablecoins issued by insured depository institutions or some non-bank issuers as "qualified".
According to this definition, the bill proposes that "qualified stablecoins " not be securities or commodities under U.S. law and that they be redeemed from the issuer upon request. In the case of non-bank issuers, the law would require the Federal Deposit Insurance Corporation, or FDIC, to establish a Qualified Stablecoin Insurance Fund to provide qualified stablecoin holders with the ability to exchange their tokens on demand for US dollars. According to Gottheimer, the bill aims to protect holders from "systemic risk, fraud and illegal financing".
In addition to insurance requirements, the Office of the Comptroller of the Currency will have a significant regulatory power to set standards and requirements for stablecoin issuers. However, Gottheimer clarified that the regulatory scope of the legislation should not go beyond these qualified stablecoins - the Securities Commission and the Commodity Futures Trading Commission "are not limited to examining unqualified stablecoins and other cryptocurrencies " under the bill.
Representatives of cryptographic technology support groups, including the Blockchain Association and the Digital Chamber of Commerce, have expressed support for the legislation.
Teana Baker Taylor, chief political director of the Digital Chamber of Commerce, praised the bill for leveling the playing field between "established stable agreements and new entrants" and putting the United States on a clearer regulatory framework for digital assets . If the draft law on stablecoins is approved by the House of representatives and the Senate and signed by President Biden , it will enter into force after a year.