Andrew Olmen, a managing partner from the law firm Mayer Brown and the former deputy director of the National Economic Council during Trump’s first term, said, “It is a major milestone,”.
He also added, "It establishes, for the first time, a regulatory regime for stablecoins, a rapidly developing financial product and industry.".
In most cases, stablecoins are used by crypto traders to move funds between theri tokens, being a type of cryptocurrency which is designed to maintain a constant value, usually a 1:1 dollar peg. It is also worth mentioning that the stablecoin bill would require tokens to be backed by liquid assets, such as US dollars and short-term Treasury bills, and for issuers to publicly disclose the composition of their reserves on a monthly basis.
Even more so, the crypto industry has long pushed for lawmakers to pass legislation creating rules for digital assets, arguing that a clear framework is capable of enabling congressional candidates in last year’s elections, and had also tried to paint the issue as bipartisan.
The House of Representatives also passed a stable coin bill last year, but the Senate, which was held by Democrats in the majority, did not take that bill up. A financial policy advocate for Public Citizen named Bartlett Naylor has said, “In advancing these bills, lawmakers forfeited their opportunity to confront Trump’s crypto grift – the largest, most flagrant corruption in presidential history,”.
Trump’s crypto ventures include a meme coin, which is called $TRUMP, which was launched in January along with a business called World Liberty Financial, a crypto company owned partly by the president.
The White House has also said that there are no conflicts of interest present from Trump and that his assets are in a trust managed by his children, reported Reuters.
Senator Elizabeth Warren, a democrat, said on the Senate Floor in May that “A bill that turbocharges the stablecoin market, while facilitating the president’s corruption and undermining national security, financial stability, and consumer protection is worse than no bill at all."
Brandon Milhorn, the president and CEO of the Conference of State Bank Supervisors, said in a statement for Reuters, “CSBS remains concerned with the dramatic and unsupported expansion of the authority of uninsured banks to conduct money transmission or custody activities nationwide without the approval or oversight of host state supervisors.”
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