Legislation to regulate stablecoins in the U.S. House of Representatives will implement a two-year ban on stablecoins similar to UST

According to Bloomberg, legislation being drafted by the U.S. House of Representatives to regulate stablecoins would impose a two-year ban on stablecoins similar to UST. According to the latest version of the bill, new "endogenously collateralized stablecoins" ( endogenously collateralized stablecoins) are illegal. The definition will apply to public sales of stablecoins that can be exchanged, redeemed, or bought back for a fixed amount of monetary value and that maintain their fixed price solely on the value of another digital asset from the same creator . The draft legislation would authorize the U.S. Treasury Department to conduct a study of Terra-like tokens in consultation with the Federal Reserve, the Office of the Comptroller of the Currency, the FDIC and the Securities and Exchange Commission, and a House committee could vote on the legislation as early as next week.