April 16 (Cointime) - U.S. House Financial Services Committee released a draft bill concerning stablecoins on Saturday, a few days before a hearing on the topic on April 19.

According to the draft, non-bank stablecoin issuers like Tether and Circle, who respectively issue USDT and USDC, will be under the authority of the Federal Reserve.

In addition, foreign issuers would be required to register before conducting business within the United States.

Failure to register could be"fined not more than $1,000,000, imprisoned for not 4 more than 5 years, or both".

The draft bill is the first significant crypto legislation to progress in 2023. It establishes definitions for payment stablecoin issuers, similar to the term used by former Senator Pat Toomey (R-Pa.) in his own stablecoin bill presented in 2022. Additionally, the bill proposes a halt on new stablecoins backed by different types of tokens until a study is conducted.