The US will require the issuers If you don't want to be jailed, you must register with the federal government.

Management Draft stablecoins US ban type algorithm -

On the morning of September 21, there were many leaks about the draft for the stablecoin regulation law being developed by the United States, with many interesting information.

Specifically, the US will temporarily ban algorithmic stablecoins for 2 years, not allowing the creation of stablecoins backed by another digital asset but sharing the same issuer.

A good example of the above algorithmic stablecoin is the guarantee by , both were created by Terraform Labs under the direction of CEO Do Kwon. and all collapsed in May 2022, wiping more than 40 billion USD of market capitalization from the market . Mr. Do Kwon was recently arrested by the Korean authorities and is asking for Interpol's arrest warrant.

The leaked content claims that the US will only allow stablecoins backed by cash (ie US dollars - USD) or highly liquid assets such as US treasury bonds. Stablecoin issuers that have not yet complied with the law will have 2 years to change their operating model and apply for a license. The stance of the draft law on asset-backed decentralized stablecoins is unknown at this time as DAI.

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Firms that issue stablecoins in the US but do not yet have a banking or credit license will be subject to state and federal financial authorities. In contrast, US bank and credit institution stablecoins will be managed by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.

Stablecoin issuers will be banned from mixing user deposits with company assets, ensuring investors can still withdraw their funds in the event of a stablecoin problem.

The draft law states that those who issue stablecoins without the approval of the above agencies will face up to 5 years in prison and an administrative fine of 1 million USD.

The law also requires the US Federal Reserve Bank (Fed) to conduct research on the economic impact of the digital dollar, which has been directed by the White House in recent policy documents.

Even so, the source who leaked the draft law said that the specific content of the law governing stablecoins is still subject to change at the discretion of lawmakers.

Legal field In the US in the past time, there have been new hot spots and inadequacies, especially after the fact that the Ministry of Finance of this country "sealed" the application of the Tornado Cash transaction mixer on the Internet. .

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After the recent upgrade of The Merge, Chairman made more statements implying that may be securities and will be subject to the management of this authority.

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