It is clear that the Central Bank of the United States (the Federal Reserve) is interfering with the congressional regulation initiative stablecoinsThat’s according to a letter recently sent to Federal Reserve Chairman Jerome Powell. The letter was sent by US House Financial Services Committee Chairman Patrick McHenry and subcommittee chairmen French Hill and Bill Huizinga.
Members of Congress objected to two letters from the Fed: SAR 23-7, regarding the New Activities Monitoring Program, and SAR 23-8, titled “Supervisory No-Objection Process for State Banks Seeking to Engage in Certain Activities Involving Token Dollars.” They wrote:
“We are concerned that these actions are being taken to undermine progress made by Congress to create a stablecoin payment regulatory regime. Moreover, if the substance of these messages is upheld, they will undoubtedly prevent financial institutions from participating in the asset ecosystem. Fingerprints.”
The letters, issued simultaneously, complement a statement of guidelines on the matter issued in January and place additional restrictions on activities related to crypto assets.
According to members of Congress, the Fed’s letters “effectively prevent banks from issuing bonds stablecoins Payments – or participate in the payment ecosystem stablecoins “of payments”, while they are “disguised as guidelines setting out the process by which these activities can be authorized”. The guidelines in January extended the restrictions that the Office of the Comptroller of the Currency imposed on national banks to include state banks.
In addition, the congressmen’s letter alleges that the Fed’s letters were issued without observing the notice and comment processes required by the Administrative Procedure Act.
major breakdown in the stablecoin billing process; Chances are that this measure will not be done today and there is a new increase after Labor Day.
Ironically, this may give both sides more time for negotiations and for President McHenry to conduct direct negotiations with the White House. https://t.co/hNrQ2WF6RN
– Justin Slaughter (@JBSDC) July 27, 2023
a major breakdown in the stablecoin’s invoice issuance process; This process may not be completed today, and there will be another review after Labor Day.
Ironically, this may give the two sides more time to negotiate and for President McHenry to negotiate directly with the White House.
– Justin Slaughter (@JBSDC)
The bill mentioned by the congressmen is the Stablecoin Payment Clarity Act of 2023, which McHenry introduced on July 20.
The committee members’ letter includes a list of eight questions. Most of this relates to implementing the directions contained in two letters from the Fed. In addition, the letter requires records to determine the timing of preparing the Fed letters.
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