The US House of Representatives Financial Services Committee has not given its support to the PWG proposal to equate the issuers of “stablecoins” with depository institutions with mandatory deposit insurance.
The PWG proposal, which was reflected in the stablecoin risk report, would put their issuers on a par with banks. In addition to meeting the requirements for capital and liquidity, organizations would be supervised at the federal level.
North Carolina Republican Patrick McHenry has proposed a state-level regulation instead of a comprehensive federal stablecoin law. He said:
“How will they mitigate these perceived risks? They will make them banks and this is a completely opposite approach.”
