Work on the legal framework of the cryptocurrency markets continues in full swing. The news about the new bill came from the USA. Users do not want regulators to force them to make transactions with cryptocurrency. Regulators, on the other hand, are trying to strengthen their positions in identifying tax evaders and criminals using cryptocurrencies. So what does the final bill cover?
US Cryptocurrency Law
Congressman Tom Emmer (R-MN) is drafting a bill regarding stable dividend-yielding coins. According to sources, the discussion of the project will allow “stablecoins with a dividend component” to register with the Securities and Exchange Commission. In particular, it actually includes a dividend component: “A Stablecoin that distributes all or part of the income from investments in assets supporting a stablecoin among the holders of a stablecoin.”
According to the wording of the bill, the SEC should establish and issue new rules for its regime of supervision and control over such stablecoins. They should include the types of assets that support these stablecoins and the requirements for their protection.
stablecoin and SEC
It is difficult to say whether the bill will bring much benefit. It doesn’t even require SEC oversight of stable dividend-yielding coins. Given that most of the revenue available to stablecoin holders comes from third-party lending or betting platforms, it is unclear how many stablecoins should comply with such a law.
As a possible example, TerraUSD (UST) holders can receive 20% of the profits from Anchor, which is managed by the same team as Terra, but the tokens themselves do not fully distribute the investment. Meanwhile, Ampleforth (AMPL) is an algorithmic stablecoin that does something similar to stock splitting, but without asset support. For example, the largest stablecoins (USDT, USDC or BUSD) cannot be regulated by this rule.
Recently, the regulation of stablecoins has become the leading legislation focused on cryptocurrency. The Biden administration’s financial regulators insist on limiting the issuance of asset-backed stablecoins by banking institutions. Republicans like Emmer usually prefer a more open framework, including the possibility of registering with different editors.
