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Guiding and Establishing National Innovation for U.S. Stablecoins ActSection 14 › Proposal

An endogenously collateralized stablecoin relies on the same originator's asset

To provide for the regulation of payment stablecoins, and for other purposes, section 14, Sec. 14. Written by .

An endogenously collateralized stablecoin relies on the same originator's asset

The document says “meansWho acts: CongressHow: statuteSec. 14 in the PDF
What the document says

“the term "endogenously collateralized payment stablecoin" means any digital asset-- (1) the originator of which has represented will be converted, redeemed, or repurchased for a fixed amount of monetary value; and (2) that relies solely on the value of another digital asset created or maintained by the same originator to maintain the fixed price.”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 14

Subsection (b). The definition applies in this section only. Two things must hold: the originator has represented that the asset will be converted, redeemed or repurchased for a fixed amount of monetary value, and the fixed price is held solely by the value of another digital asset created or maintained by that same originator.

What the document actually says

“the term "endogenously collateralized payment stablecoin" means any digital asset-- (1) the originator of which has represented will be converted, redeemed, or repurchased for a fixed amount of monetary value; and (2) that relies solely on the value of another digital asset created or maintained by the same originator to maintain the fixed price.”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 14
That sentence, in plain words

This is a coin whose maker promises a set value. The promise rests on nothing but a second coin. The same maker made that second coin too.

What this is about

Part 4 requires real assets to back the coins it covers. This kind is backed by the maker's own coin instead. The law only studies it.

No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.

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