Tether's Market Cap Surges to Record High of $83.2B, Defying the Downturn in Stablecoin Market

Stablecoin Market Continues to Contract for the 14th Consecutive Month, Potentially Impeding Crypto Prices

Sam Bankman-Fried's Connections with George Santos Are Only the Tip of the Iceberg

The U.S. House Financial Services Committee has released a preliminary version of a potentially groundbreaking stablecoin bill, which proposes a pause on stablecoins supported by other cryptocurrencies and a call for research on a central bank digital currency (CBDC).

Available on the committee's hearing page, this bill is the first significant crypto legislation to make progress in 2023. It comes after two significant events related to stablecoins over the past year: the collapse of terraUSD (UST), which was backed by a token called LUNA, and the temporary decoupling of USD coin (USDC), the second-largest stablecoin, from its peg to the US dollar.

The bill establishes precise definitions for issuers of payment stablecoins, similar to the term "payment stablecoin issuer" used in former Senator Pat Toomey's (R-Pa.) stablecoin bill presented in 2022.

The bill proposes a suspension of stablecoins such as UST until a thorough examination can be performed. Additionally, the legislation calls for an analysis of the potential effects of a Federal Reserve-issued CBDC.

The initial reporting of the bill's release was by Punchbowl News.

On Wednesday, a House Financial Services subcommittee will conduct a hearing on stablecoins, featuring Circle Internet Financial's Dante Disparte, who is responsible for USDC issuance; Jake Chervinsky from the Blockchain Association; Columbia Professor Austin Campbell; and Adrienne Harris, the Superintendent of the New York Department of Financial Services.

The hearing will take place one day after the entire Financial Services Committee convenes to receive testimony from Gary Gensler, Chair of the Securities and Exchange Commission.

A spokesperson for Representative Patrick McHenry (R-N.C.), the committee chair, informed CoinDesk that the bill, which was not previously available to the public, had been circulating among lawmakers since last fall. At the time of publication, a representative for Representative Maxine Waters (D-Calif.), the committee's ranking member, had not responded to a request for comment.

Source Coindesk