New York State Proposes New Bill Supporting Stablecoins

New York lawmaker Latrice Walker has introduced a new bill that supports the use of fiat-collateralized stablecoins as an accepted method of payment for covered bonds.

New York City Council Bill 7024, introduced on May 10, states that existing bail payment methods include cash, insurance bonds and credit cards. However, it has managed to include fiat-backed stablecoins in its list of accepted payment methods.

If passed, the state could use fiat-backed stablecoins such as Tether’s USDT, Circle’s USDC, Binance Dollar (BUSD) and TrueUSD (TUSD) to pay for bonds. It should be noted that the bill does not mention support for specific stablecoins.

At the same time, the bill makes it clear that the stablecoin proposal should not “be construed to compel any person, firm, or business to accept stablecoins or any other cryptocurrency.”

The stablecoin bill follows a bill introduced by New York Attorney General Letitia James on May 5. The bill aims to strengthen the regulation of the encryption industry to protect investors, consumers and the overall economy. Several New York lawmakers expressed support for the proposal.

Meanwhile, New York is one of the few US states with strict encryption regulations. The state has brought multiple enforcement actions against crypto firms such as KuCoin, and crypto firms operating within its jurisdiction must be licensed by the State Department’s Department of Financial Services.

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According to Cryptoslate

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