US Rep. Josh Gottheimer Introduces Bill for Government-Backed Stablecoin Insurance

The bill would designate certain stablecoins as "qualified," making them redeemable on a one-to-one basis for U.S. dollars.

By Jamie Crawley

Feb 15, 2022 at 2:09 p.m. UTC

Updated Feb 15, 2022 at 8:13 p.m. UTC

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.

Follow @JamieCrawleyCD on Twitter

U.S. Representative Josh Gottheimer (D-N.J.) has introduced a bill that would establish government-backed insurance for stablecoins.

The bill would designate certain stablecoins as "qualified," making them redeemable on a one-to-one basis for U.S. dollars.
Both bank and non-bank financial institutions would issue them subject to their meeting certain conditions on reserve requirements with cash collateral held in a segregated Federal Deposit Insurance Corporation (FDIC)-insured account.
The Office of the Comptroller of the Currency (OCC) would also have oversight of stablecoin issuers and issue rules on leverage ratios, auditing requirements, anti-money laundering/know-your-customer compliance and so on.
As a member of the House Financial Services Committee, Gottheimer last week began circulating a draft discussion bill for enacting regulation of stablecoins.
The Senate Banking Committee is set to meet today for its own hearing on stablecoins.

UPDATE (Feb. 15. 16:12): Removes link to Politico story and "report" from headline, and restructures third and fourth bullets.

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Stablecoins Regulation US Senate

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