Michigan Democrat Rashida Tlaib, along with Congressmen Jesus García and Stephen Lynch introduced a new bill this week to protect consumers from risks associated with the growing cryptocurrency market in the US. The new bill seeks to make stablecoins illegal without approvals from relevant government bodies.
Dubbed ‘Stablecoin Tethering and Bank Licensing Enforcement’ (STABLE) Act, the new bill requires the potential issuer of a stablecoin to gain approvals from the FED, Federal Deposit Insurance Corporation (FDIC), and relevant banking bodies.
According to the official press release, any person involved in the issuance of a stablecoin or related product without the written approvals from regulatory authorities will be considered illegal. The proposed Act aims to protect US consumers from cryptocurrency scams and the risks associated with such projects.