Updated House stablecoin bill drops CBDCs but gives the Fed new powers

(Kitco News) - The U.S. House Financial Services Committee has shared an updated draft of the bill outlining proposed stablecoin legislation which gives more power to the Federal Reserve while also elimination clauses about exploring a digital dollar.

The latest draft is significantly shorter than the previous version, and it taps the Board of Governors of the Federal Reserve System to be the primary regulator and author of the requirements for qualified stablecoin issuers. The primary Federal payment stablecoin regulators may issue such orders and regulations as may be necessary to administer and carry out the requirements of this section, including to establish conditions, and to prevent evasions thereof, the draft bill reads.

The bill still allows state regulators to oversee stablecoin issuers operating in their jurisdiction, but gives them the option to hand responsibility to the Fed if they so choose.

A State payment stablecoin regulator shall have supervisory, examination, and enforcement authority over a State qualified payment stablecoin issuer of such State, the bill reads, but may enter into a memorandum of understanding with the Board, by mutual agreement, under which the Board carries out the supervision, examination, and enforcement authority.