A new bill has been introduced to US Congress – a bill targeting stable coins like Facebook’s Diem (that used to be called Libra).
The bill is called Stablecoin Tethering and Bank Licensing Enforcement Act and is proposed by Rashida Taib (D, Michigan), together with Congressman Jesus García and Stephen Lynch. The purpose of the bill is to protect consumers from new threats related to the crypto market. The bill require entities offering stable coins to seek approval by the Federal Deposit Insurance Corporation (FDIC) and other relevant government agencies.
In other words, without such regulatory approval from relevant authorities, offering such financial instruments to the public will be illegal.
Personally, I think proper regulation will make the crypto industry safer and more popular, so I do not think this is bad news.