Can Janet Yellen Veto Stablecoins? 8 Things to Know About the Latest Crypto Bill in DC

Crypto regulation is quite the touchy subject, regardless of whether a crypto bull or the most staunchly anti-crypto investor is broaching the topic. But with crypto regulation coming forth, the topic is an unavoidable one. Now, senators are preparing to go to bat for crypto regulations. And it seems like no party is going to come out very satisfied. Today, we’re seeing more light shed on the latest crypto bill, and it’s creating a lot of questions, including one big one: “Can Janet Yellen veto stablecoins?”

A close-up shot of Janet Yellen.
Source: vasilis asvestas / Shutterstock.com

This bill includes some of the most sweeping regulations of cryptocurrency we’ve seen thus far. Let’s take a look at some of the most important details.

Latest Crypto Bill Goes Big on Stablecoin Regulation, Crypto Taxing

  • The bill is being introduced by Virginia Senator Don Beyer. Beyer’s authorship is surprising to many, as the senator has not taken much of a hard stance on crypto before.
  • Digital asset securities, a.k.a. tokens, see their most detailed definition yet in the bill. It defines these assets as ones that provide the holder with equity or debt interest, right to profits and dividend payments, voting rights and liquidation rights. It defines these securities also as ones that companies can issue to help fund a company’s underlying platform or service.
  • Ultimately, this means tokens will fall under the regulations of the Securities Exchange Act of 1934, which would require registration with the Securities and Exchange Commission (SEC), per CoinDesk.
  • Under the bill, “digital asset repositories,” like centralized exchanges, will be forced to register any off-chain transactions with the CFTC.
  • The bill additionally gives the Federal Reserve permission to create a central bank digital currency, or CBDC. CBDCs have been gaining in popularity among other countries. However, Fed Chairman Jerome Powell is putting the idea on the back burner here. The Fed will refrain from creating a U.S. digital currency until given the go-ahead by lawmakers.
  • With this CBDC permission, Janet Yellen will have veto power over all U.S. stablecoins. Any stablecoin issuers would have to file with the Fed and the SEC and see approval.
  • Most controversially, though, are the coming regulations to curb anonymity of crypto services. The passage of the bill will precede another ruling by Janet Yellen. In this, Yellen will create stipulations regarding the usage of tools meant to anonymize transactions.
  • On a positive note for crypto bulls, the bill largely stays away from DeFi. For example, decentralized exchanges fall outside the bill’s definition of “digital asset repository.” Rather, the bill advises other agencies to report their findings regarding DeFi for future legislation.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2021/08/can-janet-yellen-veto-stablecoins-8-things-to-know-about-the-latest-crypto-bill-in-dc/.

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