BREAKING: U.S. Congressmen Introduce New Bill to Protect Consumers From Cryptocurrency-Related Scams

Congresswoman Rashida Tlaib, in conjunction with congressmen Jesús "Chuy" García and Chairman of Task Force on Financial Technology Rep. Stephen Lynch, have come up with a draft bill that seeks to protect consumers against risks emanating from cryptocurrency-related scams.

The lawmakers' bill dubbed the "Stablecoin Tethering, and Bank Licensing Enforcement (STABLE) Act is designed to oversee the activities of Facebook's proposed digital currency, Diem.

Other stablecoins in the market will also come under this law, where activities such as issuance and commercialization could be monitored.

Regulators and lawmakers are aware that digital currencies that are tagged or stabilized by a fiat currency such as the dollar bring with them a myriad of challenges like credit risks. Still, they have opened up the market to massive liquidity.

The STABLE Act comes amid global challenges that have emerged due to the COVID-19 pandemic. However, if made into law, the bill will address some of the barriers to mainstream financial services.

The STABLE Act's primary purpose is to protect consumers against the risks of the emerging technologies in the digital and financial avenues while making confident of the safety and soundness of the financial institutions currently in place.

All three lawmakers agree that stablecoins have tremendous benefits to the economy and could be utilized to make financial transactions more efficient.

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