U.S. Congress Proposal: Legislation to Register Stablecoin Investments for Interest, Targeting UST, AMPL

According to a report by The Block, U.S. Congressman Tom Emmer from Minnesota is preparing legislation regarding interest-bearing stablecoins. The draft will allow "stablecoins with dividend components" to be registered with the Securities and Exchange Commission (SEC), but will not require the SEC to regulate stablecoins that generate dividends.

According to a report by The Block, U.S. Congressman Tom Emmer from Minnesota is preparing legislation regarding interest-bearing stablecoins that would allow "stablecoins with dividend features" to be registered with the Securities and Exchange Commission (SEC), but without requiring the SEC to regulate stablecoins generating dividends.

Under the proposed bill by Tom Emmer, this would support the distribution of all or part of the income generated from stablecoin asset investments to stablecoin holders, necessitating the establishment of a system for SEC supervision and review of such stablecoins. Stablecoin holders can receive a significant portion of their returns from third-party lending or staking platforms, and it is currently unclear what proportion would fit into the new regime proposed by the bill.

The report notes that the proposal by Tom Emmer applies to Terra USD (UST) and Ampleforth. Terra holders can earn up to a 20% annualized return from Anchor, but the token itself does not fully distribute investments, while the decentralized finance stablecoin AMPL issued by Ampleforth functions similarly to stock splits but without underlying assets. The bill does not apply to some of the largest stablecoins currently, including USDT, USDC, or BUSD.

Regulatory efforts in the U.S. concerning cryptocurrency assets have focused on stablecoins, aiming to equate the issuance of stablecoins with that of banks to bring them under banking regulation.

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