House bill

House Bill may impose a two-year ban on LUNA-like stablecoins – 24/7 Wall St.

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On Tuesday, September 20, a report came out indicating that the House is drafting new crypto regulations. The bill could already be voted on next week and should ban algorithmic stablecoins.

House Bill May Ban Terra-Like Stablecoins for 2 Years

The bill being drafted by the House is expected to primarily address the issue of Terra-like stablecoins. The legislation in question is something of a continuation of lawmakers’ concerns about stablecoins expressed in the Financial Stability Supervisory Board 2021 Annual Report.

The group that published the report was particularly concerned about stablecoins, and some of the concerns were confirmed earlier this year when the The stablecoin LUNA has collapsed dramatically. The House bill would aim to address the threat posed by algorithmic stablecoins.

The bill will likely result in a two-year ban on the creation and issuance of new “endogenously backed stablecoins.” Additionally, this legislation could require the Treasury to conduct a study on Terra-like coins. The study would also require cooperation with other agencies such as the FED and the SEC.

A busy month for crypto regulators

The purported bill being drafted in the House is just the latest of various legislative and regulatory moves undertaken by the US government and its agencies. On Monday, September 20, the Treasury Department released a call for the public to comment on the future of crypto regulation.

On Friday, the White House joined the legislative effort regarding digital assets for the first time and released a framework for future regulation. This presidential orientation could turn out to be very welcome, because just a day earlier Senator Tom Emmer publicly criticized the SEC— the agency that has so far been in the spotlight when it comes to crypto regulation — over its own lack of transparency when it comes to actions related to digital assets.

On the other side of the front line, various crypto firms have also become active in crypto regulation. Last week, the Blockchain Association, a coalition of big companies like Binance.us and Kraken, established a Political Action Committee (PAC) Hopefully this will help bring pro-crypto candidates to power in the upcoming midterm elections.

This article originally appeared on The Tokist

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