U.S. Sen. Bill Hagerty (R-TN) and U.S. Rep. Trey Hollingsworth (R-IN) have introduced measures to provide clarity to the stablecoin cryptocurrency industry and support methods.
The Stablecoin Transparency Act (S. 3970 and HR 7328) requires stablecoins backed by government securities with maturities of less than 12 months or domestic dollars while requiring stablecoin issuers to publicly release audit reports of reserves executed by third-party auditors.
“From coins as securities or commodities, to those responsible for regulating them, those in the cryptocurrency market face significant ambiguity,” said Hagerty, a member of the Senate Banking Committee. “This Act aims to provide the necessary clarity without giving the key to unscrupulous bureaucrats who threaten to underestimate innovation. I would love to have Congressman Hollingsworth partnered in this common sense effort.
Lawmakers noted that the bill gives federal agencies the power to regulate non -existent technology or impose stringent requirements for stablecoin issuers.
“There is a lot of potential in stablecoin technology, and we need to create a foundation that provides clarity to stablecoin issuers to ensure consumers are well protected and to ensure that the future of the technology is well protected,” Hollingsworth said. “As these digital assets grow in financial services and spread into the lives of Americans, we need to ensure that they happen safely so we can have more development and investment in the industry.”