The US government wants tighter controls over stabilcoins. Tether can be exchanged for a regulated crypto dollar.
A new US bill, called the Stable Act, raises concern for the cryptocurrency industry. This bill could effectively put an end to billions of dollars in transactions and set the industry back a few years.
The law requires banking licenses for stablecoin issuing organizations such as Tether, as reported by BeInCrypto. But of course it doesn’t end with that.
The bill also proposes additional requirements for Federal Reserve reporting. It also proposes an insurance policy to cover regulatory approval and assets in addition to ongoing inspection requirements.
Another proposal may require issuers of stablecoin to store their reserves directly with the FED. This puts them under central bank control and severely restricts their open use.
Tether is by far the largest and most used stabilkoin. According to the Tether Transparency Report, its supply increased only 410% this year, from $ 4.1 Billion in early January to $ 20.9 Billion.
The law is allegedly sending the US back to the dark ages in terms of innovation and digitalization. If the situation progresses in this way, the freedoms we have today with the digital money movement may be a thing of the past.