The United States proposed to Ban Cryptocurrencies with a Fixed Rate

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Kataryna Habeliia December 3, 2020

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The United States proposed to ban cryptocurrencies with a fixed rate

A bill has been introduced in the US Congress that will make illegal any products and services associated with stablecoins if they do not receive regulatory approval. New restrictions will affect Facebook cryptocurrency if the document is adopted.

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The bill “The Stable Act”

Member of the House of Representatives Rashida Tlaib has presented a new bill to the US Congress aimed at regulating digital currencies. It was called “The Stable Act” and proposes to introduce restrictions on stablecoins — cryptocurrencies with a fixed rate. Any services offered in such currencies will be considered illegal without prior approval from regulators, proposed in the bill.

“Issuing a stablecoin or a stablecoin-related product, providing any stablecoin-related services, or otherwise engaging in any stablecoin-related business … without permission is illegal unless approval has been obtained from the Federal Reserve USA and other regulators, ” the document says.

Rashida Tlaib explained on her Twitter account that the bill is aimed at combating crimes that can be committed through the issuance of stablecoins. In the description of the document, it is noted that it is intended to protect consumers from the risks associated with new digital payment instruments, such as the Facebook cryptocurrency, which previously changed its name from Libra to Diem.

In late November, the Financial Times reported, citing three sources, that Facebook may unveil its cryptocurrency in January 2021. This will be a stablecoin backed by the US dollar. Later, the company plans to issue stablecoins, the rate of which will be pegged to other national currencies.

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