**Senate Passes Bill to Regulate Digital Currency and Enhance Consumer Protections**

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18 days ago - Politics

Senate Approves New Bill to Regulate Digital Currency

In a significant decision, the Senate voted in favor of a new bill focused on regulating payment stablecoins, a type of digital currency used for online transactions. This bill is designed to create safety measures for people using these currencies, making it easier and more reliable for consumers to shop or send money digitally.

The Senate passed the motion to move forward with the bill with a strong majority, receiving 66 votes in favor and 32 against. Most of the support came from Senate Republicans, who pushed to approve this legislation.

The bill requires companies that issue payment stablecoins to get approval from federal regulators. These companies must show they have enough real money in reserve to back up the digital coins they create. This rule is intended to protect users by ensuring they can convert their stablecoins into real cash whenever needed. By having enough cash available, it helps prevent situations where people could lose money if something goes wrong with the company.

Another important aspect of the bill is that regulators will need to check on the stablecoin industry every year. This regular oversight will provide transparency, making it easier to spot any possible dangers that could impact the economy. It also clarifies that payment stablecoins are not classified as securities or commodities, which means they will not face some of the tougher financial rules that apply to other types of investments.

Additionally, the bill opens the door for foreign companies that provide stablecoins to enter the U.S. market, as long as they follow similar rules. This initiative promotes fair competition and ensures that consumer protections remain in place, regardless of where the issuer is based.

Overall, these changes are set to create a safer environment for using digital currencies. With clearer regulations, people can expect to perform transactions using stablecoins with more confidence, knowing that their money is protected. This means a smoother experience when shopping online, sending money to friends, or even investing.

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.

98 votes

Yes

66

No

32

Not Voting

2

  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