WASHINGTON, D.C.- Representative Trey Hollingsworth (R-IN) introduced the COINS (Categorization of Investments Named Stablecoins) Act, a bicameral effort between Rep. Hollingsworth and Senator Bill Hagerty (R-TN). The COINS Act marks the second iteration of Rep. Hollingsworth’s framework to provide much needed regulatory clarity for fiat currency-backed stablecoins. This simple legislation distinguishes that fiat currency-backed stablecoins are not classified as securities or commodities.
“As we have seen in the events over the past few months, algorithmic stablecoins can be extremely volatile and lead to disruptions across the digital asset market. That is why it important that we act quickly to provide regulatory certainty for reliable fiat-currency backed stablecoins that hold their reserves in high quality assets. Specifying that fiat-currency backed stablecoins are not a security nor a commodity is the next step to ensure safe and stable investment in these digital assets,” said Rep. Hollingsworth.
“From whether coins are securities or commodities, to who is in charge of regulating them, those in the cryptocurrency marketplace are navigating significant ambiguity,” said Sen. Hagerty. “This legislation aims to provide much-needed clarity without giving the keys away to unaccountable bureaucrats who threaten to choke off innovation. I am pleased to have Congressman Hollingsworth’s partnership in this common sense effort.”
BACKGROUND
Over the last few months, Rep. Hollingsworth has been focused on providing clarity and uniformity in the stablecoin marketplace. In March, he introduced “The Stablecoin Transparency Act”, which defines fiat-currency backed stablecoins, set standards for the type of assets that can be held in reserves, and required monthly disclosures on the reserves that back each stablecoin. The COINS Act is the second bill within his stablecoin framework, and he plans to introduce additional legislation to help encourage investment and participation in the marketspace.
