U.S. House Republicans proposed amendments to the stablecoin bill, which would strip the SEC of jurisdiction over this class of assets, according to The Block.
The initiative does not cover algorithmic stablecoins and focuses on assets used for payments.
“I am disappointed with the SEC’s approach to digital assets, especially to stablecoins, as well as to other aspects that do not provide clarity,” said Arkansas Republican French Hill.
The bill is intended to transfer powers from the Commission to federal and state banking and credit union regulators. The proposal also subjects stablecoin issuers to audits aimed at verifying asset backing.
Issuing ‘stablecoins’ without regulatory licensing could lead to criminal, as well as civil penalties. Issuers awaiting full regulator approval could receive a provisional authorization to issue stablecoins for up to one year.
Under the proposal, fiat-backed coins must be backed at least one-to-one by legal tender or short-term Treasury bills.
Earlier in April, during congressional hearings, policymakers criticized the stablecoin bill for outdated data in the drafting process and urged updating information for the next session.
In the same month, SEC Chair Gary Gensler faced criticism regarding the agency’s stance on cryptocurrencies. In particular, on questions about recognizing Ethereum as a security and regulating “stablecoins”.