The bill aims to bring predictability to the Stablecoin market through its regulatory regime, but Democrats said they want more security-related reforms.
WASHINGTON – A group of nine Senate Democrats announced on May 3 that they would not support a bill designed to regulate routines in the cryptocurrency industry.
Stablecoins are digital assets whose value is fixed in relation to the value of another asset, such as the value of a traded item, such as the US dollar exchange rate, the value of a traded item, such as oil, gold, or another cryptocurrency.
Unlike other cryptocurrencies where large amounts of value fluctuate frequently, Stablecoins aim to have more stable value, making them more attractive to larger risk aversion investors, such as pension funds, sovereign funds, asset managers, and wealthy family offices.
However, after they announced they would support the bill, some Democrats retracted their support on May 3, citing alleged flaws in the bill’s security clause.
