Tuesday, February 7, 2023

Outgoing US Senator Pat Toomey Introduces the Stablecoin Trust Act

  • Outgoing Pennsylvania Senator Pat Toomey introduced the Stablecoin Trust Act.
  • Tommy has said that the FTX disaster was caused not by cryptocurrency operations, but by improper or fraudulent handling of those digital assets.

Outgoing Pennsylvania Senator Pat Toomey introduced the Stablecoin Trust Act on December 22. The legislation would establish a federal regulatory framework for “payment stablecoins”. The Stablecoin TRUST Act aims to guide Congress down the path of “sensible cryptocurrency regulation”.

Like the TRUST Act introduced in April 2022, this legislation will likely be the last and final installment of the digital asset bill that Senator Toomey introduced in his final term.

In a press release, Tommy said:

“The bill will also ensure that the Federal Reserve, which has shown significant skepticism about stablecoins, will not be in a position to stop this activity.”

The proposal would also hand over regulation of stable coins to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The Stablecoin TRUST Act would also prevent stable coins from being classified as securities and exempt their issuers from being regulated as investment advisors or investment companies.

Senator Tommy excited about stablecoins

The legislation would establish a new federal license for issuers of payment stable coins, which would be overseen by the Office of the Comptroller of the Currency (OCC), the body in charge of regulating traditional banks and thrift institutions.

Senator Tommy believes in the power of stable coins to replace existing financial transactions in the real world. The Stablecoin Trust Act is also supported by Democratic Senator Elizabeth Warren of Massachusetts, Republican Senator Cynthia Lummis of Wyoming and Republican Senator Thomas Tilles of North Carolina.

Senator Toomey also criticized SEC Commissioner Gary Gensler, taking issue with the regulator’s assertion that cryptocurrencies are securities. He previously warned his colleagues in Congress that the FTX disaster was not caused by crypto operations, but by mishandling or fraudulent handling of those digital assets.

he adds:

“In our FTX discussion today, I hope we can separate potentially illegal stocks from innovative and completely legal cryptocurrencies.”

This is an automatic translation of our English version.

Nation World News Desk
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