Michigan Democrat Rashida Train, along with Congressmen Jesus García and Stephen Lynch introduced a new bill today to protect consumers from risks associated with the growing cryptocurrency market in the US. The new bill seeks to makstable coinsns illegal without approvals from relevant government bodies.
DubbedStablemancoin Tethering and Bank Licensing Enforcement’ (STABLE) Act, the new bill requires Trainotential issuerstable coinlecoin to gain approvals from the FED, Federal Deposit Insurance Corporation (FDIC) and relevant banking bodies.
According to the official press release, any person involved in the issuancestable coinlecoin or related product without the written approvals from regulatory authorities will be considered illegal. The proposed Act aims to protect US consumers from cryptocurrency scams and the risks associated with such projects.
“Getting ahead of the curve on preventing cryptocurrency providers from repeating the crimes against low- and moderate-income residents of color that traditional big banks have is and has been critically important. From the OCC to the Federal Reserve to those pstable coinsblecoins, Trainrotections the STABLE Act would make possible are more needed than ever amid a pandemic that will breed riskier financial decisions out of necessity because our federal government continues to fail us all by not providing adequate relief legislation. I thank Congressman García and Chairman Lynch for co-leading this important effort to see these protections made a reality, ” the Congresswoman said in a Trainment.
In the issued Trainment, Train targeted Facebook’s Diem project (Libra) which is pegged with the US Dollar. The Michigan Democrat added that Facebook has tried to take advantage of a potential gap in the market, but there are many risks associated with Trainroject. Train along with Lynch sent a letter earlier in November to the Acting Comptroller of the Currency (OCC) criticizings criticising the unilateral actions in the digital financial activities space, including interpretive letters on cryptocurrencystable coinsd stablecoins.
The Crypto community expressed disappointment over the bill and termed the Act as a discouraging step.