A piece of legislation that talks about the risks associated with the use of stablecoins had been scheduled for voting in the United States, but the House of Representatives have postponed it.
The lawmakers have delayed the bill until September, as they claim that it has some unresolved issues that need to be addressed.
Lack of complete draft
A report from the Wall Street Journal disclosed that the vote on the stablecoin bill had been pushed forward to September. This is because there is not a complete draft of the legislation available for the committee meeting scheduled on Wednesday.
There are a number of unresolved issues that can be found in the bill, which include provisions that the Treasury Department had added on custodial wallets.
Furthermore, the Securities and Exchange Commission (SEC) in the US has also raised some concerns that also need to be addressed.
Janet Yellen, the Treasury Secretary, who has always been vocal about regulating the crypto sector, also said that they could not provide an official response on the bill until they had had some consultations with the Biden administration.
It should be noted that Yellen has not shared her opinion about the stablecoin regulation bill publicly. But, she has spoken about developing clear stablecoin regulations.
As a matter of fact, she had also made a reference to the collapse of the TerraUSD (UST) stablecoin back in May and emphasized the need for stablecoin regulation.
It should be noted that earlier this year, the Biden administration had issued an executive order for developing crypto regulations that could be used to address the gaps existing in the regulatory framework for dealing with digital assets.
The demand for regulating the crypto industry has risen of late, particularly because of reports that indicated Russia was using cryptocurrency as a means of evading sanctions.
This has intensified the process of developing regulations for the crypto industry and other regions, such as the Europe, have also become active in this regard.
US crypto regulation
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are the two authorities overseeing the crypto market in the US for now.
A number of bills have been introduced for the regulation of cryptocurrencies, including stablecoin, but none of them have been approved as yet.
A New Jersey representative, Josh Gottheimer, had also presented a bill for stablecoin regulation. It was titled ‘Stablecoin Innovation and Protection Act’.
The bill is designed to offer support for stablecoins in the same way as fiat currencies and the Federal Deposit Insurance Corporation will do so.
Another bill that was recently put forward is a bipartisan bill that was introduced by Senator Kirsten Gillibrand and Cynthia Lummis.
The bill was introduced in June and it also comprises of a provision aimed at stablecoin regulation. Most importantly, it distinguishes between the role of the CFTC and SEC in terms of crypto regulation.
This makes it of the utmost importance, but the said bill could be postponed until 2023.