U.S. congressman Gottheimer introduces new stablecoin legislation

Josh Gottheimer, a Democratic Gongressman from New Jersey and a member of the House Financial Services Committee, has put fort a bill (Stablecoin Innovation and Protection Act of 2022) that would open the door to banks and regulated financial instituions to issue stablecoins.

The new bill would require custodians to hold the dollars, or securities such as U.S. Treasuries, backing the stablecoins in FDIC-insured, segregated bank accounts.

The new stablecoins would be designated as "qualified," meaning that every coin is redeemable for one U.S. dollar.

Under the proposed legislation, financial instituions that would like to issue these qualified stablecoins would have to be supervised by The Office of the Comptroller of the Currency (OCC).

The OCC would enforce AML/KYC checks and auditing requirements.

"We shouldn’t stifle innovation in the cryptocurrency market. We should ensure the proper safeguards are in place, and ensure our nation is a leading force in financial technology.,” said Gottheimer.

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