US congressional committee advances stablecoin bill

The US House Financial Services committee on Thursday advanced a bill to establish a federal regulatory framework for stablecoins, a type of cryptocurrency typically pegged to a traditional asset, often the US dollar.

The bill would have the US Federal Reserve write requirements for issuing stablecoins while preserving the authority of state regulators. It was previously modified to address concerns from some Democrats that stablecoin issuers could evade stricter oversight by opting to be regulated under a state regime.

Several Democrats, including Representatives Jim Himes and Josh Gottheimer, joined committee Republicans in voting to advance the bill.