Bill 119 HR 2392, also known as the Stablecoin Regulation Act, aims to regulate the use of payment stablecoins in the United States. Payment stablecoins are a type of cryptocurrency that is pegged to a stable asset, such as the US dollar, to minimize price volatility.
The bill seeks to establish a regulatory framework for stablecoins to ensure consumer protection, financial stability, and national security. It requires stablecoin issuers to obtain a license from the Federal Reserve or a designated regulatory agency and comply with certain reporting and disclosure requirements.
Additionally, the bill prohibits stablecoin issuers from engaging in certain activities, such as lending or investing stablecoin reserves without proper authorization. It also mandates regular audits of stablecoin reserves to verify their backing by fiat currency or other assets.
Overall, the Stablecoin Regulation Act aims to bring transparency and accountability to the growing stablecoin market and protect consumers from potential risks associated with these digital assets. It is currently under consideration in the US Congress and may undergo revisions before being passed into law.