“It shall be unlawful for any person to issue a stablecoin or stablecoin-related product, to provide any stablecoin-related service, or otherwise engage in any stablecoin-related commercial activity, including activity involving stablecoins issued by other persons, without obtaining written approval in advance, and on an ongoing basis, from the appropriate Federal banking agency, the Corporation, and the Board of Governors of the Federal Reserve System.”

A new bill called "The Stable Act" would prevent anyone from creating stablecoin related services without prior permission and approval from the US Government. The act is said to prevent a similar global financial crisis that happened in 2007-2008. The same crisis the government issued billions of dollars in bail out funds to criminal banking executives.

According to Congresswomen Rashida Tlaib, the primary purpose of the act is to protect minorities. Rashida is the primary politician behind the bill and is the one who presented it.

Those in crypto are against this act as it would be a huge set back for virtual currencies. Fortunately, the bill will have a hard time getting approved and there is a high chance it will not be passed. This doesn't mean they won't try again, and other bills are being pushed through to erode our privacy and weaken cryptocurrencies.