American Bankers Association: Stablecoins should be subject to strong regulation like banks

Odaily News- In two letters jointly signed by the American Bankers Association (ABA) and the Credit Union National Association (CUNA), industry associations representing banks and credit cooperatives have raised concerns about certain aspects of the comprehensive regulatory framework for stablecoins that will be debated and voted on by the House Financial Services Committee on Thursday. The current version of the bill would allow state financial regulatory agencies to approve stablecoin issuances, which has raised concerns from the ABA, the Consumer Bankers Association (CBA), and the National Association of Federal Credit Unions (NAFCU).



In their letters, the ABA and state bankers associations wrote, "In order to ensure effective consumer protection and financial stability, the stablecoin ecosystem, like the banking ecosystem, must be subject to strong regulation." They added that they hope "federal oversight of state-licensed stablecoin issuers matches the current level of oversight for state-chartered banks."



These groups also called for the stablecoin bill to include provisions for regulatory agencies to conduct reviews of reserves and third-party audits, which go beyond the current asset reporting requirements in the bill, to ensure that stablecoin issuers have the claimed assets to fully back the fiat-pegged tokens they issue. (theblock)