“New York State Legislator Proposes Legislation to Allow Stablecoins for Payment of Bonds”

A New York State legislator has just proposed new legislation that could expand the use cases for stablecoins.

On May 10, New York State Democrat Latrice Walker introduced Assembly Bill 7024, which seeks to amend the Criminal Procedure Act to allow the use of pegged stablecoins. dollar as a means of payment for the deposits.

Accepted methods of payment for bonds currently include cash, insurance guarantees and credit cards.

The bill states that state authorities will promulgate rules and regulations to determine which fiat-backed stablecoins can be accepted for posting of a bond. In the event of a drop in the value of the stablecoin, the court may request the payment of additional security.

“If the court orders the posting of a bond in accordance with paragraph (j) of subsection 1 of this article and the value of the stablecoins falls by more than fifty percent compared to the value of the stablecoins at the time of the posting bond, the court may, in its discretion, require the posting of additional bond in accordance with subsection 1 of this article”.

Walker introduced Bill 7024 right after New York Attorney General Letitia James proposed legislation to strengthen regulation of the cryptocurrency industry. According to Ms. James, this multi-billion dollar industry lacks strong regulations.

“Rampant fraud and malfunctions have become the hallmark of cryptocurrencies and it is time to bring law and order to this multi-billion dollar industry.

These common-sense regulations will bring more transparency and oversight to the industry and strengthen our ability to crack down on those who break the law. »