This article comes fromDecrypt, original author: Ryan Ozawa

Odaily Translator |

Odaily Translator |A week after his farewell address to the U.S. Senate

, outgoing Pennsylvania Senator Pat Toomey proposed another cryptocurrency regulation. The Stablecoin Reserve Transparency and Uniform Security Transactions Act of 2022 (The Stablecoin TRUST Act of 2022) seeks to establish a federal regulatory framework for "payment stablecoins" and aims to guide Congress on the path to "reasonably regulate cryptocurrencies."This regulation is not compatible with the ToomeyThe TRUST Act published in April

The discussion draft is very similar and the latest, and possibly last, of several digital asset-related bills that Toomey has introduced or co-sponsored during his tenure."I hope this framework lays the groundwork for my colleagues to pass legislation next year to protect client money without stifling innovation,"he said in a press release

, “This bill will also ensure that the Federal Reserve, which has shown great skepticism about stablecoins, cannot prevent this activity.”

Senator Toomey’s proposal also seeks to take stablecoin regulation out of the control of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The Stablecoin TRUST Act would prevent the classification of "payment stablecoins" as securities and exclude their issuers from regulation by investment advisors or investment firms.

Instead, the bill would create a new federal license for “issuers of payment stablecoins,” administered by the U.S. Office of the Comptroller of the Currency (OCC), the agency that oversees traditional banks and thrifts.

Toomey is bullish on the potential of stablecoins to transform existing real-world financial transactions.

“By digitizing the U.S. dollar and making it available on a global, instant, and near-zero-cost basis, stablecoins can be widely used in the real economy in a variety of ways,” he said in his latest press release. In his vision for the bill, which he introduced in April, he noted that “today’s stablecoins facilitate the exchange of cryptocurrencies, and tomorrow’s stablecoins may be widely used in the real economy.”For issuers, the latest bill will regulate public disclosure requirements, including that assets used to back stablecoins must be “high-quality liquid assets.” For holders, privacy protection regulations includeExcludes "new technologies such as digital assets" from Bank Secrecy Act requirements

, and made it clear that “private transactions that do not involve intermediaries or financial institutions are not required to be reported.”

Co-sponsors of the Stablecoin TRUST Act include Democratic Senator Elizabeth Warren of Massachusetts, as well as Republican Senators Cynthia Lummis of Wyoming and Republican Senators Thomas Tills of North Carolina.

Last week, Toomey joined other lawmakers in calling for regulation of cryptocurrencies following the FTX debacle, but he reminded colleagues in Congress that the disaster was not about cryptocurrencies involved, but about the mishandling or fraudulent nature of these digital assets Behavior.In his opening remarks before the U.S. Senate Banking Committee, he said

, “The wrongdoing that occurred here was not specific to the underlying assets. What happened appears to be a complete breakdown in the processing of these assets. In our discussion of FTX today, I hope we can separate the potential illegality from the completely legal and innovative cryptocurrencies.”Senator Toomey has also been critical of SEC Chairman Gary Gensler, who recently disagreed with Gensler’s claim that nearly all cryptocurrencies are securities. He has also introduced and co-sponsored other crypto bills such as the Virtual Currency Tax Fairness Act. Toomey previously published in October 2020