Pat toomey of pennsylvania recently introduced the stablecoin trust act, a federal regulatory framework for “payment stablecoins.” the act proposes the creation of a new federal license for “payment stablecoin issuers” managed by the office of the comptroller of the currency (occ). the bill is designed to guide congress towards the path of “sensible regulation of cryptocurrencies” and protect customer funds without stifling innovation. the stablecoin trust act would also take stablecoin regulation out of the hands of the securities and exchange commission and the commodities futures trading commission (cftc).
Toomey introduced the stablecoin trust act in october 2020. the act was cosponsored by democratic sen. elizabeth warren of massachusetts, republican sens. cynthia lummis of wyoming, and thomas tills of north carolina. the stablecoin trust act would standardize public disclosure requirements for issuers, requiring them to use “high-quality liquid assets” as backing for the stablecoins. privacy for holders would also be of utmost importance, exempting “new technologies like digital assets” from bank secrecy act requirements.
Toomey introduced the stablecoin trust act in order to provide clarity for both issuers and holders of stablecoins and to guide congress towards the path of “sensible regulation of cryptocurrencies”. he is optimistic about the potential of stablecoins to revolutionize existing financial transactions and enable the digitization of the u.s. dollar and make it available on a global, instantaneous, and virtually cost-free basis. sen. toomey has spoken out in favor of crypto regulation in the wake of the recent ftx collapse, emphasizing that it was not the fact that cryptocurrency was involved, but the lack of proper or fraudulent handling that caused the disaster.