Outgoing U.S Senator Pat Toomey Introduces Stablecoin Legislation

• Toomey proposed new crypto legislation a week after giving his farewell statement.
• The measure would have OCC issue a new federal license for “payment stablecoin issuers.”

Amid the ongoing depeg of stablecoins in the past and present. Along with several collapses of crypto firms, regulators around the globe are looking for legislation to regulate the crypto sector.

Pennsylvania Senator Pat Toomey is leaving office this month. The Senator discreetly proposed new cryptocurrency legislation a week after giving his farewell statement on the Senate floor. The Stablecoin TRUST Act, an acronym for “Transparency of Reserves and Uniform Safe Transactions.” Would provide a federal legal framework for “payment stablecoins” and lead Congress along the road of “sensible regulation of cryptocurrencies.”

Toomey stated in a press release:

“I hope this framework lays the groundwork for my colleagues to pass legislation next year safeguarding customer funds without inhibiting innovation. This bill will also ensure the Federal Reserve, which has displayed significant skepticism about stablecoins, won’t be in a position to stop this activity.”

Power in the Hands of OCC Proposed

The Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) would no longer be responsible for regulating stablecoins under Sen. Toomey’s legislation. The Stablecoin TRUST Act would exclude issuers of “payment stablecoins” from the requirements placed on investment counselors and investment firms by preventing them from being classified as securities.

Instead, the measure would have the Office of the Comptroller of the Currency (OCC), which regulates conventional financial institutions like banks and savings and loans, issue a new federal license for “payment stablecoin issuers.”

This measure is the most recent. And, most likely, the final of numerous bills dealing with digital assets that Senator Toomey proposed or cosponsored in this past term. It is quite similar to The TRUST Act, which he introduced in April.