A new bill has been submitted to the US House of Representatives that proposes to ban the creation of algorithmic stablecoins like TerraUSD for two years.
It seems that US lawmakers are worried about the possibility of a repeat of the collapse of TerraUSD (UST). The bill proposes to ban the creation of algorithmic stablecoins – tokens, the price of which is backed by other cryptocurrencies and is calculated using algorithms.
The document also proposes to grant the authority to regulate stablecoin issuers to the Office of Foreign Exchange Control under the US Department of the Treasury (OSC) and the US Federal Deposit Insurance Corporation (FDIC). Issuing a stablecoin without proper approval can result in a prison sentence of up to 5 years and a fine of up to $1 million.
“Those who understand cryptocurrencies know that Terra does not represent all other stablecoins, Celsius does not equal the entire DeFi space, and Three Arrows Capital does not apply to blockchain technology. But it’s too difficult for deputies to figure this out, because it’s much easier to say “cryptocurrencies are bad, they need to be regulated to death”, – wrote one of the users of the social network Twitter.
According to Bloomberg sources, a vote on the bill could take place as early as next week.
Recall that in early September, a bill on consumer protection for the cryptocurrency industry was submitted for signing by the Governor of California.
Source: Bits
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