Stablecoin Regulation Bill Introduced by US Senator Bill Hagerty

US Senator Bill Hagerty is set to introduce legislation to regulate the stablecoins business under a crystal clear regulatory framework

Tennessee Republican Senator Bill Hagerty will reportedly introduce legislation to regulate the stablecoins business.

The bill would create a clear regulatory framework for stablecoins, which are cryptocurrencies that are pegged to the value of a fiat currency, such as the US dollar.

The move comes amid increasing interest in stablecoins from both regulators and consumers. Stablecoins are seen as a more stable and less volatile alternative to other cryptocurrencies, such as Bitcoin and Ethereum.

However, they have also raised concerns about their potential to be used for illicit activities, such as money laundering and terrorist financing.

Hagerty's bill would require stablecoins to be fully backed by cash or cash equivalents, and would also impose a 1% tax on stablecoin transactions.

The bill would also give the Commodity Futures Trading Commission (CFTC) the authority to oversee the stablecoins market.

The CFTC would be responsible for licensing and regulating stablecoins issuers, and would also have the authority to take enforcement actions against issuers that violate the law.

The bill is likely to face opposition from some in the crypto industry, who argue that it would impose too many restrictions on stablecoins.

However, it is also likely to gain support from some regulators, who believe that stablecoins need to be more heavily regulated in order to protect consumers and the financial system.

The bill is expected to be introduced in the coming weeks. If it is passed by Congress, it would be the first major legislation to regulate stablecoins in the United States.