Texas Democratic Representative Sylvia Garcia yesterday presented a bill before the Congress to regulate stablecoins. Today Facebook CEO is scheduled to appear before Congress to answer lawmakers questions about Libra.
Currently, Tether is the leading stablecoin with over $4 billion market cap. It is reported that Chinese businessmen buy millions of USDT from Moscow to send it back to China in order to avoid the capital controls when bringing foreign currency into the country. USDT, USDC, TUSD, etc., are backed by US dollars.
As of now, it is not clear how this proposed bill would affect the circulation of the stablecoins. As reported earlier, the bill proposes to change the definition of existing security law to include managed stablecoins. The dollar-pegged stablecoins seem to be more popular among investors as their value is fixed and not volatile as other cryptocurrencies. The stableacoin is being issued by major companies like IMB to ease cross border settlements.