介绍： A Senate Stablecoin Breakthrough
What do you know? Congress is stepping up to do at least one job. The Senate this week passed a bill, 68-30, to establish a regulatory framework for crypto stablecoins. With one big caveat, this is a good development.
Stablecoins are a form of digital currency pegged to anothe...

介绍： A Senate Stablecoin Breakthrough
What do you know? Congress is stepping up to do at least one job. The Senate this week passed a bill, 68-30, to establish a regulatory framework for crypto stablecoins. With one big caveat, this is a good development.
Stablecoins are a form of digital currency pegged to another fiat currency or asset like gold and are designed to hold a constant value. If you buy $1 of a stablecoin, you are supposed to be able to redeem it for $1 in hard currency. They are also supposed to be backed by safe and liquid assets like Treasurys and bank deposits similar to government money-market funds.
Stablecoins reduce friction in payments and money transfers since settlements can clear within seconds versus hours or sometimes days with the traditional banking system. This can reduce risk from exchange-rate volatility for foreign counterparties. They also have lower transaction fees than credit cards, wire transfers and other payment networks.
Businesses have nonetheless been reluctant to use stablecoins because of legal uncertainty. Gary Gensler, who led the Biden Securities and Exchange Commission, created a cloud over the market with threats of arbitrary enforcement. The goal of the Senate legislation, championed by Wyoming’s Cynthia Lummis, Tennessee’s Bill Hagerty and New York’s Kirsten Gillibrand, is to lay out clear market rules.
For every dollar of stablecoins, issuers would be required to hold at least one dollar of reserves in short-dated Treasurys, bank insured deposits, government money-market funds, repurchase agreements backed by Treasury bills, and other liquid federal government-issued asset approved by regulators. This means they can’t invest in risky, high-yielding assets.
Issuers with more than $50 billion in stablecoins would be required to disclose publicly and submit to regulators audited annual financial statements. Large issuers would be regulated by the Federal Deposit Insurance Corp. (FDIC), the Federal Reserve or the Comptroller of the Currency, though smaller players could choose to be regulated by states.
There’s the biggest concern. The Senate legislation says stablecoins “shall not be backed by the full faith and credit of the United States” or subject to deposit insurance. But the FDIC insures bank deposits, and putting it in charge of regulating stablecoins may create the impression of an implicit government backstop. 
When the Reserve Primary Fund broke the buck after Lehman Brothers went belly up in 2008, Treasury guaranteed money-market funds to stabilize markets. Ditto for Silicon Valley Bank’s uninsured deposits in 2023. If a popular stablecoin breaks the buck, will the feds come to the rescue? 
It would be better if Congress put the Securities and Exchange Commission or Commodity Futures Trading Commission in charge of regulating stablecoins to avoid the impression that they are guaranteed by the government. And letting stablecoins fail in the first instance would set a useful precedent.
Broader adoption of stablecoins will create new financial risks that will have to be closely monitored, but the legislation at least establishes safeguards to protect users. It also subjects issuers to anti-money laundering laws, which could help law enforcement crack down on cartels that move money with stablecoins. 
The hope is that good stablecoins will chase out bad. Mr. Trump on Wednesday urged the House to advance the bill “LIGHTNING FAST” with “NO DELAYS, NO ADD ONS.” The House can and should still make constructive changes blocking potential bailouts. But it’s a welcome development that Congress is laying out rules for regulators so the latter can’t write law on their own.
peg /peɡ/ v. 挂钩
📚例句：Rent increases are pegged to inflation.
（租金涨幅与通胀挂钩）
🔍搭配：peg currency 挂钩货币
back /bæk/ v. 支撑
📚例句：His theory is backed by solid evidence.
（他的理论有坚实证据支撑）
🔍搭配：back project 资助项目
clear /klɪr/ v. 结算
📚例句：The cheque will clear in three days.
（支票将在三天内结算）
🔍搭配：clear debt 清算债务
break /breɪk/ v. 跌破
📚例句：The stock broke $10 yesterday.
（该股票昨天跌破10美元）
🔍搭配：break record 打破纪录
crack /kræk/ v. 打击
📚例句：Police cracked the smuggling ring.
（警方打击了走私团伙）
🔍搭配：crack down 镇压
regulate /ˈreɡjuleɪt/ v. 监管
📚例句：Parents regulate children's screen time.
（家长监管孩子的屏幕时间）
🔍搭配：regulate market 规范市场