House Financial Services Committee member and New Jersey Representative Josh Gottheimer has introduced legislation that would have the Federal Deposit Insurance Corporation back stablecoins in a manner similar to fiat deposits.
In a draft of the Stablecoin Innovation and Protection Act of 2022 released on Tuesday, Gottheimer proposed labeling stablecoins issued by insured depository institutions or certain nonbank issuers as “qualified.” Under this definition, the bill suggests “qualified stablecoins” are neither securities or commodities under U.S. law, and redeemable on demand from the issuer.