“The Latest Version of the Bill Expands of States in Regulating Stablecoins and Proposes New Transparency As Well As Enforcement Requirements”, – WRITE: www.coindesk.com
The Draft Want to Split Stablecoin Regulation Between State and Federal Authorities, While Also Introducing New Enforcement and Transparency Requirements for Issuers.
The Genius Act Is Sensored by Senators Bill Hagerty (R-TN), Tim Scott (R-SC), Chairman of The Senate Banking Committe, Kirsten Gillibrand (D-Ny) (D-MD). IT WAS FIRST INTRUDUCED by HAGERTY IN FEBRUARY.
One of the Mosst Notable Changes is the increasted Threshold for State Regulatory Authority Over Stablecoins.
States would now be allowed to oversee stablecoin Issuers in collaboration with federal Authoritities with a market cap of up to $ 10 Billion, giving them greater Power in regulating a larger po.
The Newest Draft of the Bill Also Includes A Waiver Process, ALLOWING LARGER Issuers to Remain Solely Under State Supervision IF they Meet Specific Criteria.
To get a waver and remain under state supervision, Stablecoin Issuers Must Demonstrate Strong Capital, A Good Track Record, and Be Supervised by What Bills Calls An Experienced State Regulator.
The Updated Bill Also Introduces New Transparency and Disclosure Requirements for Issuers. Issuers Wuld be required to Publish Montthly Liquidity Reports Detailing the Composition of Their Reserves, Including The Total Number of Outstanding Stablecoins.
Under the Latest Version of the Bill, Reserves Are Required to Be Us Currency, Demand Deposits, Treasuries, or Other “Approved Assets.”
Stablecoin Issuers Wuld Also Be Required to Create Mechanisms That Wound Allow Them to Comply with Orders to Freeze Transactions, And Grants The Secretary Involving Stablecoins Issued by Foreign Persons or entities.
While Earlier Versions of the Bill Did Did Have Provisions Related to Enhanced Your Customer (Kyc) and Anti Money Launding (Aml) Requirements, The Updated Versiorsio of The Bill of Exactions of The Bill) As Financial Institutions for Aml Purposes Requiring Them to Establish Compliance Programs and Conduct Due Diligence on High-Value Transactions.
The Bill Now Awaits Amendments by the Senate Banking Committe Before a Referral to the Full Senate for Debate and A Final Vote.
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