'Stablecoins' To Face Bank-Like U.S. Regulation Under Draft Bill: Report

Issuers of so-called "stablecoins," virtual currencies whose value is pegged to traditional currencies, would face bank-like regulation and oversight under a draft bill from senior U.S. House lawmakers, according to a source familiar with the matter.

Issuers of so-called "stablecoins," virtual currencies whose value is pegged to traditional currencies, would face bank-like regulation and oversight under a draft bill from senior U.S. House lawmakers, according to a source familiar with the matter.

Senior Democrats and Republicans on the House Financial Services Committee have nearly completed a draft that would subject stablecoin issuers to prudential standards on capital, liquidity and supervision, similar to those banks already face.

The draft bill would allow nonbanks to issue stablecoins provided they adhere to the tougher oversight but would prohibit companies from issuing their own stablecoins, according to the source.

Issuers of stablecoins tie their value to traditional currencies like the U.S. dollar, intending the digital currencies to have low volatility.