New Bill By US Lawmakers: Aims at Bringing Transparency in The Stablecoins Marketplace

• Representative Hollingsworth and Senator Bill Hagerty have introduced a bill to bring greater transparency to the stablecoin marketplace. 

•  It is expected to have a considerable impact on the stablecoin issuers like Tether and Circle, whose backing has been a way of much speculation in the crypto space. 

• The entire crypto space, including CBDCs and stablecoins, has become a topic of discussion for US lawmakers. 

Several US lawmakers are constantly thinking about Stablecoins. Recently, Representative Hollingsworth and Senator Bill Hagerty have introduced a bill in the house and Senate that focuses on bringing greater transparency to the stablecoin marketplace. 

This Bill, by the name Stablecoin Transparency Act, would establish standards for the quality of assets held in the reserves and would also require the stablecoin issuers to report on their reserves. 

If this Bill gets passage, it is expected to have a considerable impact on the stablecoin issuers like Tether and Circle, whose backing has been a way of much speculation in the crypto space. 

To date, the largest stablecoin issuer, Tether, has been pretty secretive about its reserves. The company has significantly delayed on promises to issue audits on its reserves and has tried quite hard to keep the information out of the public’s eyes. 

Along with the crypto industry, stablecoins have also become a topic of concern for some. They gave the fact that there might be a potential risk to the wider economy if the stablecoin issuers got complete liberty for operations. 

Lawmakers are now attempting to find a way that protects consumers and the economy. Hollingsworth thinks the Bill is the first step in the right direction. According to Hollingsworth, who told a news website, this Bill will not solve everything. Still, it is a gradual move towards unveiling a balanced approach between technology, development, and the protection of consumers. 

He believed that the Bill, whether it eventually witnesses passage or not, would give the stablecoin issuers a sneak peek at where Congress is headed with the regulation of stablecoin. He wants to ensure good actors in the stablecoin sphere, those interested in regulatory compliance, get the clarity essential to make decisions about regulation, investments, and how to continue developing the technology. 

He stated to the news website that Good actors in the space want to see the bad actors removed from the space, precluded from acting in the space so that a single bad actor will not tarnish the reputation and good efforts of the rest of the industry. Although he did not really specify whom he considered bad actors. 

The crypto space, including all its related concepts like that of stablecoins, is witnessing worldwide discussion and thought given by authorities. It is to look forward to what might happen in the future. 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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