Bill Overview
Title: Stablecoin TRUST Act of 2022
Description: This bill establishes a regulatory framework for payment stablecoins (digital assets which an issuer must directly convert to fiat currency). Specifically, the bill only allows the following entities to issue stablecoins a money transmitting business, a non-depository trust company, or any other person that is authorized by a state banking supervisor to issue payment stablecoins; a national limited payment stablecoin issuer; a depository institution; or a national trust bank.
Sponsors: Sen. Toomey, Patrick [R-PA]
Target Audience
Population: People involved in or using stablecoins and cryptocurrencies globally
Estimated Size: 68000000
- Stablecoins are digital assets that are tied to a fiat currency to maintain a stable value, primarily used in digital and global financial transactions.
- Individuals who use cryptocurrencies for transactions and investments will be impacted as the legislation directly targets the regulation of stablecoins.
- Cryptocurrency exchanges and platforms, like Coinbase or Binance, which offer stablecoins will have to adjust their operations to comply with new regulations.
- Financial institutions and companies already involved in or planning to enter the stablecoin market will see changes in compliance and operational costs.
- Consumers who use cryptocurrencies for payments or savings will experience changes in how stablecoins are provided and regulated, possibly affecting availability or trust in these financial products.
- Regulating stablecoins may encourage more widespread usage among the general population by providing a safer, more reliable form of digital currency for everyday transactions.
- Countries considering similar regulations could see effects in terms of technological and financial innovation. Implementers in other countries may look towards the US framework for guidance.
Reasoning
- The Stablecoin TRUST Act is predominantly going to affect people who are using, investing in, or operating within the cryptocurrency industry, particularly those involved with stablecoins.
- The budget constraints require us to focus on individuals or businesses directly tied to medium-term growth in the stablecoin sector.
- The policy will likely impact moderately common individuals in the population, such as tech workers, investors, and progressive financial institution employees, that are already involved in digital currencies.
- Some individuals won't be affected and will represent the general population to highlight the limited reach of the policy in its current implementation.
Simulated Interviews
Software Engineer (San Francisco, CA)
Age: 32 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- The regulation might lead to increased consumer trust, which is good for business.
- Concerned about compliance costs increasing operational expenses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Financial Analyst (New York, NY)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- Trust in stablecoins may increase, aligning them closer with traditional finance.
- Concern over potential delayed innovation due to regulatory constraints.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Chief Technology Officer (Seattle, WA)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Regulation will probably stabilize the volatile market, attracting new users.
- Worries about the pace of innovation slowing due to bureaucratic processes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Graduate Student (Austin, TX)
Age: 23 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- This could make stablecoins more accessible and trustworthy for everyday use.
- I'm cautious about government overreach in digital innovation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Banking Executive (Chicago, IL)
Age: 39 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- Having regulations in place assures us while we integrate stablecoins into our products.
- Regulations, if too strict, might push away the nascent market participants.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Entrepreneur (Miami, FL)
Age: 55 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- Stablecoin regulation might help in increasing customer trust and adoption.
- Worried about how fast we can adapt to new regulation requirements.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Investor (Dallas, TX)
Age: 47 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Regulation could provide a more stable long-term environment for investments.
- I'm worried that legal compliance will reduce quick innovation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
Student (Boston, MA)
Age: 22 | Gender: other
Wellbeing Before Policy: 9
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- It's interesting to see regulatory frameworks for digital currencies taking shape.
- I think accessibility could improve as a result, even if I'm not directly affected.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Freelance Graphic Designer (Los Angeles, CA)
Age: 31 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 4.0 years
Commonness: 10/20
Statement of Opinion:
- I'm hopeful regulation brings more clients willing to pay in stablecoins.
- Concerned about surveillance and restrictions beyond financial security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Retired Teacher (Detroit, MI)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 20/20
Statement of Opinion:
- I'm not affected by such policies as I don't use or plan to use digital currencies.
- If it aids economic stability, it would indirectly benefit all.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $10000000)
Year 2: $4500000 (Low: $2500000, High: $9000000)
Year 3: $4000000 (Low: $2000000, High: $8000000)
Year 5: $3500000 (Low: $1500000, High: $7000000)
Year 10: $3000000 (Low: $1000000, High: $6000000)
Year 100: $1000000 (Low: $500000, High: $3000000)
Key Considerations
- The scope of regulation will determine the extent of compliance costs for businesses.
- International coordination with other major economies on stablecoin regulation might influence global markets.
- Rapid technological advancements in the crypto space could alter the financial landscape quickly, impacting long-term estimates.