The STABLE Act would drive all stablecoin issuers to have financial institution licenses, a shot throughout the bow that portends an rising authorized problem for the trade.
On Wednesday, three U.S. congressional Democrats introduced the STABLE Act, an 18-page invoice that will require, amongst different issues, stablecoin issuers to accumulate banking charters, get approval from the Federal Reserve and maintain FDIC insurance coverage.
The invoice’s authors declare stablecoins signify a continuation of the shadow banking system that preys on poor communities. The crypto trade argues this overly burdensome wouldn’t solely stifle innovation however guarantee the one gamers on this new area are the deep-pocketed fintechs with the sources for compliance.
In at the moment’s episode, NLW argues that is extra than simply one other invoice that may go nowhere in Congress, it’s the opening salvo of a brand new set of arguments that may outline the subsequent face of regulatory battles for the complete crypto trade.
