Crypto & Blockchain News

Fiat-backed Stablecoins Can Be Used for Posting Collaterals in New York Under the Proposed Bill

A new bill that would allow dollar-pegged stablecoins to be used as a legal form of payment for bail bonds has been tabled by a New York senator. The political law lists current methods of payment of collateral bonds, such as cash, insurance bonds, and credit cards, and attempts to add “fiat-backed stablecoins” to the list. It was submitted on May 10 by New York State Democrat Latrice Walker.

The move aims to integrate digital asset classes with fiat collateral within the state’s current criminal procedure code. It is unclear which significant “fiat-backed stablecoins” fall under this new definition and whether any stablecoins New York authorities would reject.

Sam Bankman-Fried, the creator of FTX, was released under strict house arrest on December 22, 2022, after two guarantors secured $250 million in bonds to Manhattan federal court on his behalf. His criminal trial is scheduled to begin on October 2.

The new law was introduced less than a week after Letticia James, New York’s attorney general, proposed new regulations on May 5 that would give the state more control over cryptocurrency exchanges.

The proposed bill would give New York authorities the power to call witnesses, impose civil penalties on cryptocurrency companies that break the law, and shut down businesses suspected of engaging in fraud or illegal activity.

James has been harshly critical of cryptocurrencies lately, despite the fact that the launch of this act demonstrates the willingness of the New York state government to include stablecoins in its criminal procedure law.

Alex Mashinsky, former CEO of Celsius, was the target of James’ complaint on January 5; Most recently, on March 9, James sued Seychelles-based cryptocurrency exchange Kuoin for selling securities and commodities without a license.

Source link

Related Articles

Back to top button