Congress is Making ‘Material Progress’ in New Crypto Bill – Circle Founder

The crypto market has been subject to intense scrutiny and regulatory debates recently as its popularity continues to rise. Notably, the US Congress, responsible for shaping the country’s legislative framework, has been actively engaged in drafting a new crypto bill. 

Jeremy Allaire, the CEO of Circle, a leading blockchain technology company behind the USDC stablecoin believes that Congress is making significant strides in this light. He recently expressed his optimism about the ongoing crypto bill discussions by lawmakers, stating that material progress is being made.

Allaire highlighted on Twitter that Congress has announced an upcoming major hearing for next Tuesday focused on the Future of Digital Assets and Regulatory Clarity. Additionally, he revealed that a newly published draft of the US Stablecoin Bill has also been published, which shows significant progress between the Financial Services Committee and the Democrats on the House Financial Services Committee. 

1/ Congress will hold another major hearing next Tuesday on the Future of Digital Assets and Regulatory Clarity. And yesterday a major new draft of the US Stablecoin Bill was published that represents material progress between @FinancialCmte & @FSCDems. A thread below. 🧵

— Jeremy Allaire (@jerallaire) June 9, 2023

The draft bill introduced by Senior House Republicans in the US Congress aims to provide guidelines for the treatment of digital assets, particularly in relation to their classification as commodities.

Key Issues Raised in the Draft Crypto Bill

According to Allaire, the recently published draft of the US Stablecoin Bill represents significant progress on several crucial issues that are integral to the regulation of stablecoins and digital assets. 

The draft addresses key areas, including Federal Reserve standards and rules, custody and consumer protection, treatment of algorithmic stablecoins, interoperability standards, and rules facilitating banks’ expansion into digital asset custody.

Remarkably, the draft bill aims to address these concerns by strengthening the role of federal regulators while preserving the existing dual-banking system model, which involves the participation of state regulators.

In addition to addressing the role of federal regulators and preserving the dual-banking system model, the proposed bill also acknowledges the importance of strong custody procedures for stablecoin issuers. By introducing significant and expanded language in these areas, the bill seeks to establish clear guidelines for stablecoin issuers to ensure the safety, security, and integrity of consumer funds.

Overall, Allaire noted that the US Stablecoin Bill presents a significant opportunity for the United States to take the lead in establishing policies that drive global adoption of digital dollars.