A new bill was introduced by the United States House Financial Services Committee that seeks to ban certain stablecoins for two years and give U.S. agencies, such as the Department of Treasury and Federal Banking regulators, more power to oversee crypto assets.

The bill, which has been circulating among lawmakers since fall 2022, was made public for the first time, and is the first proposed law for payment stablecoins in Congress. The bill targets stablecoins that are backed by other crypto assets, known as endogenously collateralized stablecoins, and would not only result in a two-year ban on such stablecoins but also legal consequences for the firms issuing them, if passed.

Later this week, the House Financial Services Committee is set to discuss payment stablecoins and related legislation. The proposed bill would allow the U.S. Treasury Department to conduct extensive research on the targeted stablecoins and produce a report on its findings within one year of the bill becoming law.

Industry leaders, such as Circle CEO Jeremy Allaire, have expressed concerns about the bill and its potential impact on the role of the dollar in the global economy. Allaire tweeted that although the bill is comprehensive, there are difficult and unresolved issues that need to be addressed.

Sources: 

https://www.investing.com/news/cryptocurrency-news/us-bill-proposes-twoyear-ban-on-stablecoins-backed-by-crypto-3056862

https://coinedition.com/u-s-bill-proposes-two-year-ban-on-stablecoins-backed-by-crypto/ 

https://www.cnbctv18.com/cryptocurrency/how-us-draft-bill-on-crypto-will-help-stablecoin-holders-and-issuers-16422621.htm

https://www.bloomberg.com/news/articles/2022-09-20/house-stablecoin-bill-would-put-two-year-ban-on-terra-like-coins#xj4y7vzkg