Why did the Republicans make such a decision?
First of all, the initiative will not affect algorithmic "stable tokens". It is aimed exclusively at coins that are used for conducting payment transactions.
So, French Hill, a Republican from Arkansas, made a statement that he was completely disappointed with the SEC's actions towards cryptocurrencies. In particular, to those belonging to the class of stablecoins. According to him, they do not give any clarity.
According to Republicans, jurisdiction should be transferred to the federal regulatory authorities of the banking sector and credit unions. In addition, they want a more transparent audit of "stable tokens" to check the security of assets.
Note that the issue of stablecoins without proper licensing will cause various sanctions. Therefore, issuers who are waiting for approval must issue a temporary permit to issue such coins for a period of 1 year.
The initiative states that such tokens must be provided with a 1-to-1 fiat currency or use short-term treasury securities for this.
It should be noted that in April, the law on stablecoins was criticized, since outdated data was used in the preparation.