US Stablecoin Bill Receives Bi-Partisan Support

In another significant development for crypto regulation, the U.S. House Financial Services Committee advanced a bill to establish a federal regulatory framework for stablecoins.

The bill proposes that the U.S. Federal Reserve would be responsible for setting requirements for issuing stablecoins while maintaining the authority of state regulators. Notably, the bill underwent modifications to address concerns raised by some Democrats. They worried that stablecoin issuers could evade stricter oversight by choosing to be regulated at the state level.

The bill received bi-partisan support, with several Democrats, including Reps. Jim Himes and Josh Gottheimer, joining Republicans to advance the legislation. However, Representative Maxine Waters, the committee’s top Democrat, opposed the bill, citing “major flaws,” in particular giving private entities a license to issue their own money.

Despite discussions between Representative Waters and Committee Chair Patrick McHenry over the past few weeks, no agreement was reached, leaving certain contentious points unresolved. McHenry revealed that the White House’s review of the bill resulted in disagreement, leading to further deliberations.

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The approval of the stablecoin regulatory framework bill followed the committee’s advancement of another bipartisan bill on Wednesay. This separate bill aims to establish a regulatory framework for cryptocurrencies and provide clarity on whether a token qualifies as a security or a commodity.

The developments signal a growing focus on crypto regulation in the United States, as policymakers seek to strike a balance between fostering innovation and safeguarding financial stability. With stablecoins becoming an integral part of the crypto ecosystem, the need for clear and comprehensive regulations has become paramount.