SlideShare a Scribd company logo
1 of 15
STATE PAYMENT STABLECOIN
REGULATIONS
By: www.ProfitableInvestingTips.com
https://profitableinvestingtips.com/profitab
le-investing-tips/state-payment-stablecoin-
We wrote not so long ago that crypto entities that
hold people’s money are likely to end up being
regulated like banks are. In the case of banks,
some have state charters and others have
national charters. State banks are answerable to
state banking authorities but eventually fall
under the sway of the US Federal Reserve.
https://profitableinvestingtips.com/profitab
le-investing-tips/state-payment-stablecoin-
Legislation is being considered in the US House of
Representatives that would give initial authority
over stablecoin operations to state banking
authorities.These would have to do with state
payment stablecoin regulations. Payment
stablecoin is the term the legislators are using to
describe stablecoins that are pegged one to one
with the US dollar and have dollar reserves to
match their crypto assets.These would be
stablecoins used for payment purposes.
https://profitableinvestingtips.com/profitab
le-investing-tips/state-payment-stablecoin-
Legislation Does Not Deal with Algorithmic
Stablecoins
https://profitableinvestingtips.com/profitab
le-investing-tips/state-payment-stablecoin-
As with all types of legislation under consideration,
it is a work in progress and only reaches its final
form at the end of negotiations and multiple
votes. Prior proposals had issues and varieties of
stablecoins included.This time around,
Republicans in committee have cut out all that
does not apply to dollar backed stablecoins with
reserves to match their crypto assets.
https://profitableinvestingtips.com/profitab
le-investing-tips/state-payment-stablecoin-
They have ramped up state responsibility. As written
in the draft legislation, states will have increased
power to charter issuers of stablecoins.The Federal
Reserve will have ultimate authority but only when
states have failed to follow Fed recommendations
or to offer a concrete plan for dealing with specific
concerns about an individual stablecoin issuer.The
proposed legislation does not deal with algorithmic
stablecoins which the legislators view as totally
different entities.
https://profitableinvestingtips.com/profitab
le-investing-tips/state-payment-stablecoin-
US Lags the EU in Enacting Crypto Legislation
https://profitableinvestingtips.com/profitab
le-investing-tips/state-payment-stablecoin-
As we noted recently, new EU crypto rules have
put the European Union ahead of all major
economies in having concrete crypto
regulations. As we expected going back a year or
more, we may expect to see a crypto regulation
fight over any of various issues that will slow the
development of a comprehensive package.
https://profitableinvestingtips.com/profitab
le-investing-tips/state-payment-stablecoin-
To us, the Republican move to streamline legislation
regarding a subset of stablecoins, the ones that are
probably the easiest to regulate, is an excellent
idea.While many crypto businesses are moving or
thinking of moving offshore due to what they see as
excessive regulation, many simply want regulation
clarity and certainty to the rules that they will need
to follow going forward. From what we see with the
state payment stablecoin work in progress this
looks like the sort of thing that the crypto realm
could live with.
https://profitableinvestingtips.com/profitab
le-investing-tips/state-payment-stablecoin-
https://profitableinvestingtips.com/profitab
le-investing-tips/state-payment-stablecoin-
Will We See a Ban on Algorithmic Stablecoins?
https://profitableinvestingtips.com/profitab
le-investing-tips/state-payment-stablecoin-
Although the issue was removed from the current
US legislation under consideration, a ban on
“endogenously collateralized” stablecoins is
likely in the US in the near future and is a reality
today in Canada.This wording refers to
algorithmic stablecoins like Terra which
collapsed last year.
https://profitableinvestingtips.com/profitab
le-investing-tips/state-payment-stablecoin-
In the previous US legislative package these
stablecoins would have been banned for a
couple of years.We would not be surprised if the
US follows the Canadian lead when the issue
comes to a vote in the House of Representatives
and Senate in the US in the coming year or so.
https://profitableinvestingtips.com/profitab
le-investing-tips/state-payment-stablecoin-
Those who choose to speculate by trading Bitcoin
are OK with volatility but anyone who chooses
to use a crypto token that tracks the dollar or
another hard currency deserves protection so
that they do not see their monetary assets
evaporate overnight. For DeFi businesses this is
essential as the downward-sliding values of
crypto tokens last year were what drove some
out of business.
https://profitableinvestingtips.com/profitab
le-investing-tips/state-payment-stablecoin-
For more insights and useful information about
investments and investing, visit
www.ProfitableInvestingTips.com.

More Related Content

More from InvestingTips

Economic and Investment Risks for 2024
Economic and Investment Risks for 2024Economic and Investment Risks for 2024
Economic and Investment Risks for 2024InvestingTips
 
Can Stablecoins Be Self-regulating?
Can Stablecoins Be Self-regulating?Can Stablecoins Be Self-regulating?
Can Stablecoins Be Self-regulating?InvestingTips
 
Bitcoin Viability As a Long Term Investment
Bitcoin Viability As a Long Term InvestmentBitcoin Viability As a Long Term Investment
Bitcoin Viability As a Long Term InvestmentInvestingTips
 
Would a Digital Dollar Hurt Banks?
Would a Digital Dollar Hurt Banks?Would a Digital Dollar Hurt Banks?
Would a Digital Dollar Hurt Banks?InvestingTips
 
Will 2024 Be a Good Year for Crypto?
Will 2024 Be a Good Year for Crypto?Will 2024 Be a Good Year for Crypto?
Will 2024 Be a Good Year for Crypto?InvestingTips
 
Should You Diversify Your Crypto Investments?
Should You Diversify Your Crypto Investments?Should You Diversify Your Crypto Investments?
Should You Diversify Your Crypto Investments?InvestingTips
 
Obligations of a Crypto Business
Obligations of a Crypto BusinessObligations of a Crypto Business
Obligations of a Crypto BusinessInvestingTips
 
Does Crypto Finance Terrorism?
Does Crypto Finance Terrorism?Does Crypto Finance Terrorism?
Does Crypto Finance Terrorism?InvestingTips
 
Are Smart Contracts Legal?
Are Smart Contracts Legal?Are Smart Contracts Legal?
Are Smart Contracts Legal?InvestingTips
 
Can the Law Fix Crypto’s Problems?
Can the Law Fix Crypto’s Problems?Can the Law Fix Crypto’s Problems?
Can the Law Fix Crypto’s Problems?InvestingTips
 
Apple as a Model for Crypto’s Future
Apple as a Model for Crypto’s FutureApple as a Model for Crypto’s Future
Apple as a Model for Crypto’s FutureInvestingTips
 
Are Crypto Infrastructure Investments Safe Bets?
Are Crypto Infrastructure Investments Safe Bets?Are Crypto Infrastructure Investments Safe Bets?
Are Crypto Infrastructure Investments Safe Bets?InvestingTips
 
Who Gets to Vote in Crypto?
Who Gets to Vote in Crypto?Who Gets to Vote in Crypto?
Who Gets to Vote in Crypto?InvestingTips
 
Binance Nixes Russia
Binance Nixes RussiaBinance Nixes Russia
Binance Nixes RussiaInvestingTips
 
Volume Indicators for Trading Bitcoin
Volume Indicators for Trading BitcoinVolume Indicators for Trading Bitcoin
Volume Indicators for Trading BitcoinInvestingTips
 
Blockchain Liquidity Risk
Blockchain Liquidity RiskBlockchain Liquidity Risk
Blockchain Liquidity RiskInvestingTips
 
Is Decentralization Always Important?
Is Decentralization Always Important?Is Decentralization Always Important?
Is Decentralization Always Important?InvestingTips
 
Euronext Bitcoin ETF
Euronext Bitcoin ETFEuronext Bitcoin ETF
Euronext Bitcoin ETFInvestingTips
 
Will the 2024 Election Affect Crypto?
Will the 2024 Election Affect Crypto?Will the 2024 Election Affect Crypto?
Will the 2024 Election Affect Crypto?InvestingTips
 

More from InvestingTips (20)

Economic and Investment Risks for 2024
Economic and Investment Risks for 2024Economic and Investment Risks for 2024
Economic and Investment Risks for 2024
 
Can Stablecoins Be Self-regulating?
Can Stablecoins Be Self-regulating?Can Stablecoins Be Self-regulating?
Can Stablecoins Be Self-regulating?
 
Bitcoin Viability As a Long Term Investment
Bitcoin Viability As a Long Term InvestmentBitcoin Viability As a Long Term Investment
Bitcoin Viability As a Long Term Investment
 
Bitcoin Versus NFTs
Bitcoin Versus NFTsBitcoin Versus NFTs
Bitcoin Versus NFTs
 
Would a Digital Dollar Hurt Banks?
Would a Digital Dollar Hurt Banks?Would a Digital Dollar Hurt Banks?
Would a Digital Dollar Hurt Banks?
 
Will 2024 Be a Good Year for Crypto?
Will 2024 Be a Good Year for Crypto?Will 2024 Be a Good Year for Crypto?
Will 2024 Be a Good Year for Crypto?
 
Should You Diversify Your Crypto Investments?
Should You Diversify Your Crypto Investments?Should You Diversify Your Crypto Investments?
Should You Diversify Your Crypto Investments?
 
Obligations of a Crypto Business
Obligations of a Crypto BusinessObligations of a Crypto Business
Obligations of a Crypto Business
 
Does Crypto Finance Terrorism?
Does Crypto Finance Terrorism?Does Crypto Finance Terrorism?
Does Crypto Finance Terrorism?
 
Are Smart Contracts Legal?
Are Smart Contracts Legal?Are Smart Contracts Legal?
Are Smart Contracts Legal?
 
Can the Law Fix Crypto’s Problems?
Can the Law Fix Crypto’s Problems?Can the Law Fix Crypto’s Problems?
Can the Law Fix Crypto’s Problems?
 
Apple as a Model for Crypto’s Future
Apple as a Model for Crypto’s FutureApple as a Model for Crypto’s Future
Apple as a Model for Crypto’s Future
 
Are Crypto Infrastructure Investments Safe Bets?
Are Crypto Infrastructure Investments Safe Bets?Are Crypto Infrastructure Investments Safe Bets?
Are Crypto Infrastructure Investments Safe Bets?
 
Who Gets to Vote in Crypto?
Who Gets to Vote in Crypto?Who Gets to Vote in Crypto?
Who Gets to Vote in Crypto?
 
Binance Nixes Russia
Binance Nixes RussiaBinance Nixes Russia
Binance Nixes Russia
 
Volume Indicators for Trading Bitcoin
Volume Indicators for Trading BitcoinVolume Indicators for Trading Bitcoin
Volume Indicators for Trading Bitcoin
 
Blockchain Liquidity Risk
Blockchain Liquidity RiskBlockchain Liquidity Risk
Blockchain Liquidity Risk
 
Is Decentralization Always Important?
Is Decentralization Always Important?Is Decentralization Always Important?
Is Decentralization Always Important?
 
Euronext Bitcoin ETF
Euronext Bitcoin ETFEuronext Bitcoin ETF
Euronext Bitcoin ETF
 
Will the 2024 Election Affect Crypto?
Will the 2024 Election Affect Crypto?Will the 2024 Election Affect Crypto?
Will the 2024 Election Affect Crypto?
 

Recently uploaded

10052024_First India Newspaper Jaipur.pdf
10052024_First India Newspaper Jaipur.pdf10052024_First India Newspaper Jaipur.pdf
10052024_First India Newspaper Jaipur.pdfFIRST INDIA
 
11052024_First India Newspaper Jaipur.pdf
11052024_First India Newspaper Jaipur.pdf11052024_First India Newspaper Jaipur.pdf
11052024_First India Newspaper Jaipur.pdfFIRST INDIA
 
Top^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In Musina
Top^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In MusinaTop^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In Musina
Top^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In Musinadoctorjoe1984
 
Income Tax Regime Dilemma – New VS. Old pdf
Income Tax Regime Dilemma – New VS. Old pdfIncome Tax Regime Dilemma – New VS. Old pdf
Income Tax Regime Dilemma – New VS. Old pdftaxguruedu
 
Textile Waste In India/managing-textile-waste-in-India
Textile Waste In India/managing-textile-waste-in-IndiaTextile Waste In India/managing-textile-waste-in-India
Textile Waste In India/managing-textile-waste-in-Indiatheunitedindian7
 
Analyzing Nepal's Third Investment Summit.pdf
Analyzing Nepal's Third Investment Summit.pdfAnalyzing Nepal's Third Investment Summit.pdf
Analyzing Nepal's Third Investment Summit.pdfYojana Investment
 
12052024_First India Newspaper Jaipur.pdf
12052024_First India Newspaper Jaipur.pdf12052024_First India Newspaper Jaipur.pdf
12052024_First India Newspaper Jaipur.pdfFIRST INDIA
 
Press-Information-Bureau-14-given-citizenship.pdf
Press-Information-Bureau-14-given-citizenship.pdfPress-Information-Bureau-14-given-citizenship.pdf
Press-Information-Bureau-14-given-citizenship.pdfbhavenpr
 
Decentralisation and local government in India
Decentralisation and local government in IndiaDecentralisation and local government in India
Decentralisation and local government in IndiaTulsiTiwari4
 
Indian Economy: The Challenge Ahead Since India gained
Indian Economy: The Challenge Ahead Since India gainedIndian Economy: The Challenge Ahead Since India gained
Indian Economy: The Challenge Ahead Since India gainedalianwarrr55
 

Recently uploaded (10)

10052024_First India Newspaper Jaipur.pdf
10052024_First India Newspaper Jaipur.pdf10052024_First India Newspaper Jaipur.pdf
10052024_First India Newspaper Jaipur.pdf
 
11052024_First India Newspaper Jaipur.pdf
11052024_First India Newspaper Jaipur.pdf11052024_First India Newspaper Jaipur.pdf
11052024_First India Newspaper Jaipur.pdf
 
Top^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In Musina
Top^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In MusinaTop^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In Musina
Top^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In Musina
 
Income Tax Regime Dilemma – New VS. Old pdf
Income Tax Regime Dilemma – New VS. Old pdfIncome Tax Regime Dilemma – New VS. Old pdf
Income Tax Regime Dilemma – New VS. Old pdf
 
Textile Waste In India/managing-textile-waste-in-India
Textile Waste In India/managing-textile-waste-in-IndiaTextile Waste In India/managing-textile-waste-in-India
Textile Waste In India/managing-textile-waste-in-India
 
Analyzing Nepal's Third Investment Summit.pdf
Analyzing Nepal's Third Investment Summit.pdfAnalyzing Nepal's Third Investment Summit.pdf
Analyzing Nepal's Third Investment Summit.pdf
 
12052024_First India Newspaper Jaipur.pdf
12052024_First India Newspaper Jaipur.pdf12052024_First India Newspaper Jaipur.pdf
12052024_First India Newspaper Jaipur.pdf
 
Press-Information-Bureau-14-given-citizenship.pdf
Press-Information-Bureau-14-given-citizenship.pdfPress-Information-Bureau-14-given-citizenship.pdf
Press-Information-Bureau-14-given-citizenship.pdf
 
Decentralisation and local government in India
Decentralisation and local government in IndiaDecentralisation and local government in India
Decentralisation and local government in India
 
Indian Economy: The Challenge Ahead Since India gained
Indian Economy: The Challenge Ahead Since India gainedIndian Economy: The Challenge Ahead Since India gained
Indian Economy: The Challenge Ahead Since India gained
 

State Payment Stablecoin Regulations