Over the years, regulators have continued demanding that cryptocurrencies must be made as much regulated as possible.
The regulatory authorities have continued sharing their concerns over the cryptocurrency industry. They have always pointed out the risks that cryptocurrencies have posed with their existence.
Still, the world has continued to recognize the nature of cryptocurrencies and their importance.
However, the governments have recognized the true nature and potential of the blockchain networks plus the stablecoins.
Pat Toomey’s Proposal
Over the course of time, people have started to recognize the importance of stablecoins. Even governments have now recognized the importance of stablecoins and the potential they have.
Pat Toomey, a Republican Senator from the United States seems to have recognized the importance of stablecoins. This is the reason why he has recently submitted a proposal in favor of the stablecoins.
Senator Pat Toomey is also the (soon-to-be retired), US Banking Committee’s Ranking Member. While he is serving his last weeks at the office, he has proposed a new bill that favors the existence of stablecoins.
The new bill he has proposed is for the introduction of a new framework that will be designed for stablecoin payments. It will be responsible for facilitating the payments that are processed using stablecoins.
TRUST Act of 2022
Toomey introduced the new bill on Wednesday, naming it the “TRUST Act of 2022”. The bills tend to provide insights into cryptocurrencies.
The bill also provides information on the regulations and the legislation process for the issuance and payment processing of stablecoins.
The bill seeks approval as soon as possible so it can be implemented in the year 2023. It would require a new framework to be introduced that will promote the adoption of stablecoins.
Remarks by Toomey
Toomey recently issued a statement in favor of the stablecoins. As per him, the stablecoins are and come from a very phenomenal development process that comes from an exciting technology.
They have the potential to change the way the traditional financial system works. Technology holds the future of payments and money and it will eventually transform them.
As per him, the stablecoins are a thing of the future and their perspective is long-term. Therefore, it is important that the entire world adopts them, and eventually, it will.
However, he wants the United States to be the first country to issue very streamlined legislation around the issuance and circulation of stablecoins.
Stablecoins to be used for the USD
Toomey went on to claim that introducing a USD dollar through stablecoin technology would be a game changer for the country.
The particular stablecoin will not be backed by a third party or an unknown source. It will be backed by the United State and the Federal Reserve.
This way, people from around the world will start adopting the actual USD stablecoin and not the other stablecoins.
A digital stablecoin would become nearly cost-free, and instant, and will be adopted on a global scale, making things very promising for the country as well.
The dollar demand will continue rising and even the physical economy will start feeling its impact.
What happens if the Bill is passed?
Now the bill is with the US Congress we will be reviewing it to see whether it can be approved or if it will get rejected.
If the bill gets approved, it would seem that the non-banking, as well as the non-state institutions, will have the ability to issue stablecoins.
However, the institutions will need regulatory approval before they are granted the license to operate and issue stablecoins.
As proposed, the regulatory body that will overlook the approval process would be the OCC. This would also mean that the stablecoins have been accepted by the government and more stablecoins will be introduced.