The stipulations on custodial wallets from the Treasury Department and concerns from the Securities and Exchange Commission were reportedly the remaining points in the bill.
A bill addressing the possible risks of stablecoins has apparently been delayed for consideration by lawmakers in the US House of Representatives.
People with knowledge of the situation told the Wall Street Journal on Monday that House members will probably postpone voting on a stablecoin measure until September because they were unable to finish a draft in time for a committee meeting on Wednesday. The restrictions on custodial wallets from the Treasury Department and worries from the Securities and Exchange Commission were allegedly among the outstanding difficulties in the measure.
In order to respond to the law, Treasury Secretary Janet Yellen allegedly intended to work with the Biden administration. However, Yellen previously asked for regulatory clarification in the cryptocurrency field regarding stablecoins, citing worries over TerraUSD (formerly UST) depegging from the U.S. dollar. Neither has publicly commented on the proposed legislation. The executive order signed by President Joe Biden in March seeks to close supervision gaps for digital assets.
— Senator Pat Toomey (@SenToomey) May 10, 2022
Numerous measures that would have regulated stablecoins in the US have been postponed or otherwise failed to get through the legislative process. The Stablecoin Innovation and Protection Act, presented in February by New Jersey Representative Josh Gottheimer, would enable the Federal Deposit Insurance Corporation to back stablecoins similarly to fiat deposits. A bipartisan bill that Cynthia Lummis and Kirsten Gillibrand submitted in the Senate in June also called for regulating stablecoins issued by financial institutions, but its consideration may not happen until 2023.
In the UK, MPs have been working on stablecoin legislation despite a change in the government in July as a result of Boris Johnson’s response to a controversy. Johnson will soon be the new prime minister of the country. The nation’s Department of Treasury allegedly started debating whether accepting stablecoins as payment is acceptable.