US Law Makers Introduce New Stablecoins Law
Three US lawmakers, Rashida Tlaib, Jesús “Chuy” García and Stephen Lynch, have introduced the Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act that will regulate the issuance and use of stablecoins to protect consumers from the risks caused by the new digital payment instruments, such as Facebook’s Libra (Diem) and other Stablecoins.
According to the bill, the prospective issuer of a stablecoin must obtain a banking charter, and obtain approval from the Federal Reserve, the Federal Deposit Insurance Corporation, FDIC, and other banking agency 6 months before its issuance, and obtain FDIC insurance.
PayPal CEO Advices Crypto Industry to Comply with Regulators
PayPal CEO Dan Schulman said that the cryptocurrency industry should comply with regulators if it wants to thrive, stating that PayPal invested a tremendous amount in regulatory compliance.
While speaking as a guest in an online web summit themed the cashless era hosted by The New York Times columnist, Andrew Ross Sorkin on Wednesday, Schulman said that regulatory compliance, a full understanding of security, risk management, financial controls, FinCEN controls and AML controls are a foundational requirement for successfully running a crypto industry.
Visa Partners With Circle To Issue First USDC Card
Visa will collaborate with Circle Internet Financial to issue the first Visa corporate card connected to USDC to enable 60 million merchants to spend USDC stablecoin.
According to Visa head of crypto Cuy Sheffield, this move is made to tap into the potential of stablecoin. “We see significant potential for stablecoins like USDC to help our clients enable new payment flows and are committed to helping them become integrated into the payments ecosystem in a secure and convenient way”, he said.
Ripple CEO Rethinks Stand on Leaving US
Brad Garlinghouse, Ripple CEO said he is reconsidering his earlier stand on moving the headquarters of Ripple from the United States because of regulatory issues surrounding XRP cryptocurrency following the election of Biden as the U.S president.
He said this while speaking to CNN’s Julia Chatterley on Wednesday.