US May Introduce Two-year Ban on New Algorithmic Stablecoins
The stablecoin regulation bill that is being drafted in the US House of Representatives would introduce a two-year ban on new algorithmic stablecoins, Bloomberg has reported.
According to the publication, the document provides for restrictions on coins without full backing in cash or highly liquid assets. For existing projects, a grace period can be introduced: in two years they must change their business models.
The draft law obliges the US Treasury to conduct a study of algorithmic stablecoins. The consultations will include the Federal Reserve System, the OCC, the Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission.
Issuers of fiat-backed stablecoins would fall under the control of banking regulators and the Fed.
