US legislators have just introduced a bill in the Congress that if passed will require stablecoins issuers to receive bank charters before they can issue the assets.
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In particular, US representatives Rashida Tlaib (D-Mich.), Jesús "Chuy" García (D-Ill.) and Stephen Lynch (D-Mass.) introduced the Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act on Wednesday, which focuses mainly on regulating stablecoins like Facebook's Libra.
The bill, which has 18 pages in total, stipulates stablecoins issuers must receive a bank charter, approval from the Federal Reserve, approval from the Federal Deposit Insurance Corporation as well as from the bank regulator in order to issue stablecoins.
In addition, institutions wishing to issue their own stablecoins must also conduct an ongoing analysis of any systemic risk as well as have FDIC insurance or maintain reserves that allow for easy conversion back to US dollars.
All these measures are applicable to stablecoins pegged to other national or state currencies.