**Senate Rejects New Regulations for Stablecoins**

Chamber
senate

29 days ago - Politics

Senate Blocked New Rules for Digital Currency

In a recent vote in the Senate, lawmakers decided against moving forward with a new proposal aimed at regulating payment stablecoins, which are a type of digital money. Senate Democrats pushed for this plan, but it was ultimately blocked by a close vote of 48 to 49. To pass, the proposal needed more approval, specifically a 60-vote majority.

This proposed law, known as S. 1582, aimed to make payments using stablecoins safer for everyone. It would have required companies that issue these digital currencies to have enough money set aside to support them. This means if someone used a stablecoin, they would know there was real money backing it, reducing the risk of losing their funds.

Additionally, the new rules would have ensured that every year, financial experts would review the stablecoin market. This yearly check would help identify any potential problems and keep the market transparent, which means everyone could see how it is working.

One of the key points of this proposal was that it would clarify that stablecoins are not like stocks or other investments. This distinction would allow more people and businesses to use stablecoins without having to follow stricter financial rules, making digital money easier to use.

The blocked proposal also intended to allow foreign stablecoin companies into the U.S. market, as long as they followed similar guidelines. This would increase competition and provide consumers with more options.

Despite the benefits the new rules could have brought to everyday transactions, the Senate voted against the proposal, leaving the current situation unchanged for now. This means that using payment stablecoins will continue without the added protections and clarity that the new regulations would have provided.

This is a document about new rules for digital money known as payment stablecoins.

The most important point is that this document sets up clear guidelines for how payment stablecoins can be used and regulated.

Here are the details:

  1. Annual Reports: Every year, regulators must create a report on payment stablecoins. This includes:

    • Trends in how payment stablecoins are used.
    • The number of applications for permission to issue payment stablecoins.
    • Potential risks that these digital coins might pose to the financial system.

  2. Who Can Issue Payment Stablecoins: Only approved companies can issue these stablecoins. This helps ensure that they follow safety rules.

  3. Rights of Banks and Credit Unions: Banks can accept deposits and manage payment stablecoins, making it easier for people to use this kind of digital money.

  4. Foreign Issuers: Payment stablecoins from other countries can be used in the U.S. if they follow comparable rules. They must also be registered and hold enough reserves to meet customer needs.

  5. Risk Management: The document emphasizes managing risks, like making sure that the payment stablecoins do not cause financial problems or support illegal activities.

  6. Effective Date: The new rules will start to apply 18 months after the law is passed or 120 days after final regulations are issued.

These rules are designed to make sure that using payment stablecoins is safe for everyone, protect people's money, and create a stable digital money system.

97 votes

Yes

48

No

49

Not Voting

3

  1. Considered by Senate. (consideration: CR S3155-3156)
  2. Measure laid before Senate by motion. (consideration: CR S3025)
  3. Motion to proceed to consideration of measure agreed to in Senate by Yea-Nay Vote. 69 - 31. Record Vote Number: 263.
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  4. Motion to proceed to measure considered in Senate. (CR S3017)
  5. Motion to proceed to measure considered in Senate. (CR S2983)
  6. Second cloture motion on the motion to proceed invoked in Senate by Yea-Nay Vote. 66 - 32. Record Vote Number: 262. (CR S2965)
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  7. Motion by Senator Thune to reconsider the vote by which cloture on the motion to proceed to the measure was not invoked (Record Vote No. 240) rendered moot in Senate.
  8. Cloture motion on the motion to proceed rendered moot in Senate.
  9. Motion to proceed to consideration of measure made in Senate.
  10. Second cloture motion on the motion to proceed presented in Senate. (CR S2947)
  11. Motion to proceed to consideration of measure made in Senate. (CR S2847)
  12. Motion by Senator Thune to reconsider the vote by which cloture on the motion to proceed to the measure was not invoked (Record Vote No. 240) made in Senate.
  13. Cloture on the motion to proceed to the measure not invoked in Senate by Yea-Nay Vote. 48 - 49. Record Vote Number: 240. (CR S2823)
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  14. Motion to proceed to consideration of measure made in Senate. (CR S2814)
  15. Cloture motion on the motion to proceed to the measure presented in Senate. (CR S2772)
  16. Motion to proceed to consideration of measure made in Senate. (CR S2772: 3)
  17. Placed on Calendar Senate

    This is a document about new rules for digital money known as payment stablecoins.

    The most important point is that this document sets up clear guidelines for how payment stablecoins can be used and regulated.

    Here are the details:

    1. Annual Reports: Every year, regulators must create a report on payment stablecoins. This includes:

      • Trends in how payment stablecoins are used.
      • The number of applications for permission to issue payment stablecoins.
      • Potential risks that these digital coins might pose to the financial system.

    2. Who Can Issue Payment Stablecoins: Only approved companies can issue these stablecoins. This helps ensure that they follow safety rules.

    3. Rights of Banks and Credit Unions: Banks can accept deposits and manage payment stablecoins, making it easier for people to use this kind of digital money.

    4. Foreign Issuers: Payment stablecoins from other countries can be used in the U.S. if they follow comparable rules. They must also be registered and hold enough reserves to meet customer needs.

    5. Risk Management: The document emphasizes managing risks, like making sure that the payment stablecoins do not cause financial problems or support illegal activities.

    6. Effective Date: The new rules will start to apply 18 months after the law is passed or 120 days after final regulations are issued.

    These rules are designed to make sure that using payment stablecoins is safe for everyone, protect people's money, and create a stable digital money system.

  18. Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 66.
  19. Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
  20. Introduced in Senate