On Wednesday night, Congresswoman Rashida Tlaib presented a bill to the US House of Representatives aimed at forcing fiat currency operators to comply with the same rules and registration requirements that banks expect.
Legislation called the Stable Coin Pegging and Banking Licensing Act (STABLE) provides a new and very broad definition of a stable currency. Furthermore, it imposes a number of restrictions that prohibit the issuance of stable currencies for any organization that is not a “reliable custodian that is a member of the Federal Reserve System”.
Furthermore, one of the provisions of the law will do this:
“It is illegal for any person to issue a stable currency or a product related to a fixed currency, or to offer services related to a fixed currency, or to engage in a business related to a fixed currency, including activities that include stable currencies issued to wander … … ”
The decisions sparked a marked unity revolt from the crypto community, including Taleb’s colleagues from the Financial Services Commission.
“The consequences are serious,” spokesman Warren Davidson told the Cointelegraph about the bill. “Among the worst consequences for the people the Taliban are trying to protect are people who have nothing to do with banks and those who suffer from a lack of banks.”
Davidson expressed the view that the requirements of the bill will ensure that only large banks will be able to use stablecoin technology in the US: “I do not know their motives, but I know that the effect is to block JPMcoin and kill everything else. ”
In his statement, Congressman Tom Commander also outlined the benefits stablecoins can have for low- and middle-income users:
“Those who support us in the development of these innovations in the United States have worked to study and understand this technology, which will have tremendous beneficial effects for Americans and people around the world with low incomes.”