Cetoex News – One American state has introduced legislation that will undoubtedly impact hte digital asset landscape. Specifically, New York has introduced a bill that would accept stablecoins as a form of payment for bail.

Assembly Bill number 7024 would amend the current criminal procedure law to now include the digital asset class. Moreover, the legislation states its intention not to authorize “fiat-collateralized stablecoins as a form of bail,” within the state.

New York Introduces Stablecoin Bill

Stablecoins are among the most popular digital asset offerings that the industry has crafted. Moreover, the stability garnered from their backing by fiat currencies grants them the potential for easier integration. Now, new legislation is set to do just that.

New York has introduced a new bill that would accept stablecoins as a form of payment for bail. Moreover, the bill would amend the existing acceptable forms of bail payment, which include cash, credit cards, and various bonds, to now include the digital asset class. 

Specifically, the new legislation notes that “fiat-collateralized stablecoins,” be introduced as acceptable payment under the amended criminal procedures. Subsequently, the acceptance of the bill could open the door to a variety of stablecoin implementations in the state and beyond. 

The development comes after New York Attorney General Letitia James proposed newfound cryptocurrency regulations. Additionally, James announced “landmark legislation to tighten regulations” on the digital asset sector in the state. Conversely, the stablecoin bill seems to be a step in the right direction. 

Amid the regulatory uncertainty of the industry in the US, developments like these remain important. Nevertheless, the debate over the digital asset sector in the country will continue to be vital. Especially as political elections arrive in the coming year. 

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Cetoex News – Republicans on the House Financial Services Committee are once again looking to establish regulations for stablecoins this week. A discussion draft bill is now available to the public, which will likely be the focal point of discussions with Democrats.

The bill would create a definition of “payment stablecoins,” specifying what types of entities could issue them and defining how these companies should handle reserves. It does leave out algorithmic stablecoins. However, it also repeats clauses stating that an issuer can either be a subsidiary of a federally insured depository institution, or a state or federally-regulated nonbank company.

In addition, the draft bill also declares the following:

• Stablecoins must be fully backed by safe reserves that are subject to monthly reviews by registered accountants
• Stablecoins are not securities

The latter declaration is a big one, as it settles the ongoing controversy on whether tokens are securities or commodities. Therefore, the Commodity Futures Trading Commission would oversee stablecoin trading, not the SEC.

Additionally, the draft bill on Stablecoin gives a bit more power to the states and their approach to stablecoin enforcement. In particular, it gives consideration to state-based licensing. However, it also provides that the federal reserve can overrule an enforcement disagreement.

According to CNBC, the new draft bill is half the length of the previous draft. It focuses on rules governing the registration and approval process for individual prospective stablecoin issuers.

Democrats are already skeptical of the draft. It was drafted by House Republicans without Democrat input. Last week, Rep. Maxine Waters (D-Calif.), the senior-most Democrat on the committee, said the legislative body should be “starting from scratch,” in regard to the new bill. Therefore, it is early to say if this draft will receive the bipartisan support it needs to become a bill.

NEWS BY – CETOEX NEWS