Stablecoin Legislation to Get Full Senate Vote in May

According to a recent report by Politico, the much-talked-about stablecoin legislation will get a full Senate vote in May. 

The report, which cites an anonymous source, says that Senate Majority Leader John Thune intends to hold a vote before Memorial Day (May 26). 

The Senate Banking Committee passed the legislation last March, with several Democrats voting against it. 

The legislation is meant to introduce clear rules for banking institutions and cryptocurrency firms that want to engage in stablecoin issuance. 

In order to create dollar-pegged cryptocurrencies, such issuers would need to apply for licenses. 

The stablecoin bill also introduces reserve requirements for issuance in order to ensure that tokens can be redeemed for actual dollars without any hassle. 

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However, the bill has been criticized by Massachusetts Senator Elizabeth Warren since she believes that it does not sufficiently protect consumers. 

Despite some opposition from some left-leaning Democrats, the bill is still expected to secure bipartisan support. 

This would mark a major victory for the crypto industry, which has been clamouring for stablecoin rules.

In the meantime, stablecoins are gaining more prominence. Mutual fund giant Fidelity is reportedly considering entering the burgeoning sector. 

As reported by U.Today, crypto mogul Mike Novogratz recently predicted that stablecoins might replace the foreign exchange (FX) market within just five years.