US legislators propose stablecoin bill to strengthen dollar's dominant position
U.S. Representatives French Hill and Bryan Steil have released a discussion draft of a bill that would establish a regulatory framework for stablecoins pegged to the U.S. dollar in the United States. The legislation would impose a two-year ban on issuing "endogenous collateral stablecoins", meaning issuers will be prohibited from creating stablecoins backed by their own digital assets.
In addition, it also requires the U.S. Treasury Department to promote research on stablecoins. Before the release of this draft bill, the Trump administration had confirmed plans to regulate stablecoins and introduce them domestically. David Sacks, President Trump's cryptocurrency czar, stated that stablecoins could "expand the dominance of the dollar internationally."
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