phase one is to ban it.. phase to is to then licence/permit it under rules. obviously if you dont follow the rules then you get punished to the same extent as the ban.
this is because its a presumed consumer protection where stablecoin ICO creators need to insure and ensure that the peg/swap rate is secure and reserves are held to honour the peg rate so that no one loses
i welcome that consumer protection where stablecoin ICO creators have to be audited and transparent about the reserves so that each pegged coin is actually backed by its rated amount
what you will start to see is stable coins have a "spread" that widens if the ICO creators spends/takes a fee
EG if its a 2% fee. then the market rate of stable coin is:
101 buy 99sell at a fixed stable rate
if the ICO creator steals/syphons 10%
then that spread widens
105 buy 95 sell at a fixed stable rate
Topic: US Proposes a 2-Year Ban on Algorithm Stablecoins (Read 44 times)
The United States House of Representatives has drafted legislation that will see Terra-like stablecoins banned in the US for the next 2 years and regulatory agencies will be required to carry out a study of “endogenously collateralized” tokens.
According to the draft revealed by Bloomberg, it will be a criminal offense to create or issue new “endogenously collateralized stablecoins” in the United States.
Furthermore, the draft includes a provision of 2 years for the existing stablecoin issuers to amend their models and collateralize their offerings differently.
The word endogenous means something synthesized within the system, meanwhile, stablecoins like TerraUSD require their issuers to mint or burn Luna to stabilize the value of UST, creating stablecoins with similar backing will henceforth be prohibited in the US.
The earlier version of the bill required stablecoins creators to maintain a 1:1 liquid reserve for every stablecoin in the crypto space and would also limit the types of assets that could back them.
The latest draft—which Bloomberg notes is currently sitting with committee chair Rep. Maxine Waters (D-CA), and may need to be reviewed by ranking member Rep. Patrick McHenry (R-NC)—goes even further.
Read Full News: https://mycryptoparadise.com/us-proposes-a-2-year-ban-on-algorithm-stablecoins/
According to the draft revealed by Bloomberg, it will be a criminal offense to create or issue new “endogenously collateralized stablecoins” in the United States.
Furthermore, the draft includes a provision of 2 years for the existing stablecoin issuers to amend their models and collateralize their offerings differently.
The word endogenous means something synthesized within the system, meanwhile, stablecoins like TerraUSD require their issuers to mint or burn Luna to stabilize the value of UST, creating stablecoins with similar backing will henceforth be prohibited in the US.
The earlier version of the bill required stablecoins creators to maintain a 1:1 liquid reserve for every stablecoin in the crypto space and would also limit the types of assets that could back them.
The latest draft—which Bloomberg notes is currently sitting with committee chair Rep. Maxine Waters (D-CA), and may need to be reviewed by ranking member Rep. Patrick McHenry (R-NC)—goes even further.
Read Full News: https://mycryptoparadise.com/us-proposes-a-2-year-ban-on-algorithm-stablecoins/
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