The Biden Administration’s Stablecoin Plan! The Special Purpose Charter is Coming!

0
27

According to reports, the US government is growing rapidly stablecoin he plans to rein in his market. At the moment, assets such as Tether are not facing serious regulation, but in the near future the situation may change. The Biden administration will put stablecoins in the same category as banks and is working continuously on the necessary legal framework for this.

Regulation of Stablecoin

The administration, the congress stablecoin exporters and he is trying to persuade them for a special-purpose charter covering companies doing similar work. Although the details of the legislation have not yet been clarified, it is known that a serious path has been taken in the process.

Politicians stablecoinhe is aware that the IS are not adequately regulated, so statements are constantly being made about this. Earlier this week, Federal Reserve Chairman Jerome Powell told the Financial Services Committee that Tether (USDT) and USDC Coin (USDC) as stablecoinhe said that they should be regulated within the same parameters as money market funds, such as bank deposits.

In addition, Powell stressed that they will not take a ban decision related to other crypto currencies. The US administration, which is not considering pursuing a similar policy with China, is approaching crypto currencies more moderately. But they are also adamant that the necessary regulations should be put into effect quickly.

Some Details About the Arrangement

THE FED and Yale University at the end of the research conducted jointly by the, a 49-page article was created. Stablecointwo regulatory frameworks have been established for Accordingly, regulators have only two options, either they will accept them as the same as public money, or they will eliminate them thanks to a digital dollar that the central bank will issue.

According to current data, crypto currencies partially or completely indexed to the dollar (stablecoin) its total market capitalization exceeded $128 billion. USDC and Binance USD (BUSD sunday sunday, Tether still holds more than half of the market, although it has increased its market share this year. The uncontrolled growth of the sunday also raises concerns about the liquidity and reserve status of exporters. In its latest report, Tether failed to show too many resources that could be directly cashed out against the digital dollars it printed. On top of that, allegations that he invested in Evergrande shares have ravaged the markets. Taking regulatory steps in this area as soon as possible will be most useful for crypto currency investors.

Distribution of Tether Reserves

Tether (USDT) it had last announced its full reserve allocation in May.

You can follow our news on our Telegram channel, Instagram, Facebook, Twitter accounts and Youtube channel.