Coin Middle donations valued at over $ 100,000 following the proposal for an anti-stablecoin invoice
The Stable Coin Legislation has been a boon for donations to Coin Center, a cryptocurrency think tank and policy advocacy group. The organization received over $ 100,000 in donations in solid coins two days after the bill was introduced.
Cryptocurrency investors, entrepreneurs, and enthusiasts showed strong support for the industry's leading political advocacy group after three U.S. Democratic officials tabled a bill requiring stable coin issuers to secure bank charter and either maintain coverage or the reserves of the Federal Deposit Insurance Corporation to keep operating to be able to.
Coin Center donations were sent via Gitcoin in USDC, dai, and some ether to the Washington, DC-based organization, which received more than $ 130,000 from over 100 donors. An additional $ 60,000 in matched funds is expected to be paid out later this month at the end of the donation period.
Although the bill is practically dead on arrival due to the imminent end of the Congressional session, if the bill were introduced and passed in the next session, the bill would and could also require the permission of a variety of regulators from issuers to actually distribute tokens legal restrictions on node operators for networks such as Ethereum may be placed.
"We are incredibly grateful to the DeFi and Ethereum communities for this support," said Neeraj Agrawal, Coin Center's communications director. Agrawal praised the mechanism by which they received the donations, adding, "Gitcoin is an amazing platform for people interested in a problem to fund a solution."
Donations sent through Gitcoin account for nearly 10% of Coin Center's annual budget of more than $ 1 million.
Peter Van Valkenburgh, Research Director of the Coin Center, wrote in a post on the bill published Thursday that the legislation is targeting stable coins rather than “traditional money transmitters”, perhaps because “it is easier than a young innovative industry with fewer political allies than to select an older sector with deeper pockets. "
The STABLE Act claims to be a way of defining "deposits" in relation to digital assets. If stablecoins act like money, they should be regulated like money, Willamette University College of Law assistant professor Rohan Gray, an advisor on the bill, told CoinDesk on Wednesday.
The bill would regulate collateral-backed stablecoins like dai as well as dollar-backed coins like USDC.
Update (December 5th, 3:06 UTC): This article has been updated to reflect the increase in Coin Center Gitcoin donations since the article was first published.