U.S Congress is making some important changes in its schedule for the next week. The House of Representatives is undergoing preparing to perform debate a new draft bill that could deal with the matter of regulating stablecoin operators within the national jurisdiction.
To this end, the current head of the Securities and Exchange Commission is expected to make an appearance. He could be representing the position of the financial institution as part of the investigation of SEC movements.
The hearing for the stablecoin legislature is set to take place next Wednesday. In this manner, the US Congress will also discuss and question various aspects of the draft bill in question. One such attribute is concerning the terms and legal conditions for setting payment methods for stablecoin issuers.
The House of Representatives is also going to conduct a debate on the matter of the digital dollar and other important issues about crypto legislation.
The new draft bill that deals with the regulations of stablecoin is a 72-page draft and also discusses the possibility of appointing a new regulatory agency. At present, there are strong chances that Congress members may nominate the Federal Reserve to oversee the administration of non-banking entities that are publishing stablecoin projects such as Tether USDT.
At the same time, the regulated banking enterprises that are covered by FDIC insurance policy may also be able to offer stablecoins under the supervision of the Federal Reserve.
At the same time, the bills also deal with mandating foreign banking operators to apply for registration with the proper authority. It means that any offshore companies or stablecoin operators will only be able to offer services to American consumers once they have acquired the appropriate registration.
On the other hand, any companies found to be working without a proper certification may be penalized as high as $1 million. The defaulters of this law can also face jail time spanning over 5 years.
SEC Chief will Appear Before House Financial Committee
The House Committee on Financial Services can be working on the subject of SEC oversight. This investigation is set to take place only a day before the next congressional debate on the matter of the stablecoin draft session.
The meeting conducted by the committee will invite the SEC chief as a witness when the investigation is taking place. The majority of staff of the committee will inspect various crucial aspects of the matter including policies, activities, and actions as well as regulatory development processes.
It is worth noting that such a meeting last happened in October 2021. At the same time, the Congressional committee is also going to inspect the changes made in the legal definition of an exchange.
The new legal term for crypto exchange by SEC showcases them as a securities market. Some media reports have highlighted that SEC has received criticisms from internal sources on this matter as well with instances like Commissioner Hester Pierce condemning the idea.