As the crypto industry rebounds from the Terra Ecosystem (LUNA) crisis, the New York State Department of Financial Services is the latest government to provide recommendations for creating and managing cryptocurrencies. stablecoins.
Authorities issued a press release outlining three primary principles that would apply to state-licensed crypto businesses under the authorization BitLicense.
Firms must fully collateralize stablecoins issued by reserve assets, with the market value of the reserve equal to or greater than the face value of all units in circulation.
Reserves must also include assets such as US Treasury bills, reverse repurchase agreements fully collateralized by US Treasury bills, Treasury notes or US Treasury bonds.
Stablecoin regulations may be implemented in the near future.
All stablecoin issuers must also agree to undergo an independent monthly audit by a US-based accountant.
The new restrictions only apply to dollar-backed stablecoins, according to the agency.
However, general stablecoin policy will likely be spelled out in the first cryptocurrency bill introduced in Congress by Wyoming Senator Cynthia Lummis.
Asian countries are also moving!
Other countries, such as Japan and South Korea, quickly passed legislation to protect investors in the wake of the Terra crash. Meanwhile, Terraform Labs, the company behind Terra, is being investigated for possible wrongdoing in the management of the UST stablecoin.