**Senate Passes Bill to Regulate Stablecoins for Safety and Transparency**

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16 days ago - Politics

Senate Moves to Regulate Digital Currencies Known as Stablecoins

In a significant step towards regulating digital currencies, the Senate voted decisively to move forward with a bill aimed at providing safety and transparency for payment stablecoins. This bill, referred to as S. 1582, received a strong majority with a vote of 69 in favor and 31 against.

Stablecoins are a type of digital currency designed to keep their value stable, making them easy to use for transactions like shopping or sending money. The new law will require companies that issue these stablecoins to get approval from the federal government. This is to ensure they have enough real money in reserve to back up the digital coins they sell. For example, if a company promises that you can exchange their stablecoin for actual cash, they must have the money available to do that when you want to make the exchange. This requirement aims to protect people from losing money if something goes wrong with the company.

As part of the new rules, every payment stablecoin issuer must prove they have sufficient funds to support their digital money. Annual reports will be required from regulators to keep track of how stablecoins are performing and to identify any risks that could impact the economy. This transparency is designed to keep the digital currency market safe for everyone.

Another important aspect of this bill is that payment stablecoins will not be classified as securities or commodities. This means they avoid some stricter financial regulations, making it easier for individuals and businesses to use them without added complications.

The bill also opens the door for foreign companies that issue stablecoins to enter the U.S. market, as long as they follow similar regulations and keep their reserves in U.S. banks for added safety. Overall, S. 1582 aims to create a safer environment for using digital currencies by reducing the chances of fraud and instability. It is expected that these changes will lead to a smoother experience for users, encouraging more people to confidently engage in transactions with stablecoins.

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.

100 votes

Yes

69

No

31

Not Voting

0

-
  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