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U.S. House Committee Unveils 2023 Stablecoin Bill Draft

The U.S. House Financial Services Committee has published a draft of a landmark stablecoin bill, marking the first significant crypto legislation of 2023. The proposals include a moratorium on stablecoins backed by other cryptocurrencies and a request to study a central bank digital currency.

Some stablecoin logos
Some stablecoin logos

Addressing Stablecoin Incidents

This bill follows two major incidents involving stablecoins in the past year: the collapse of terraUSD (UST), backed by the LUNA token, and the temporary deviation of USD coin (USDC) from its $1 peg. The legislation introduces definitions for payment stablecoin issuers, a term previously used by former Senator Pat Toomey (R-Pa.) in his 2022 stablecoin bill.

Moratorium and CBDC Study

The moratorium on stablecoins like UST would remain in place until a study can be conducted. The bill also calls for a study on the potential impact of a CBDC issued by the Federal Reserve. Punchbowl News initially reported the bill's publication.

Upcoming Hearings on Stablecoins

A House Financial Services subcommittee will hold a hearing on stablecoins, featuring speakers such as Dante Disparte from Circle Internet Financial (issuer of USDC), the Blockchain Association's Jake Chervinsky, Columbia Professor Austin Campbell, and New York Department of Financial Services Superintendent Adrienne Harris. This hearing will occur the day after the Financial Services Committee meets with Securities and Exchange Commission Chair Gary Gensler.

Bill Circulating Since Last Fall

A spokesperson for Rep. Patrick McHenry (R-N.C.), the chair of the committee, revealed to CoinDesk that the bill has been circulating among lawmakers since last fall but had yet to be shared with the public before. A spokesperson for Rep. Maxine Waters (D-Calif.), the committee's ranking member, did not respond to a request for comment by press time.