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For those waiting on clarity surrounding stablecoins in the U.S., Representative Maxine Waters (D-CA), a key figure in the House Financial Services Committee, has indicated that a stablecoin bill could be finalized soon.
What Happened: We are on our way to getting a stablecoin bill in the short run, Waters told Bloomberg in a recent interview.
This news comes after she previously criticized a draft version of the bill, calling it problematic and lacking proper investor protections.
Historically critical of previous drafts, which she labeled as "deeply problematic and bad for America, Waters highlighted the necessity of ensuring stablecoins are adequately backed by assets.
"It's about making sure investors and the people are protected," Waters elaborated.
The legislative push has gained momentum recently, with significant involvement from key U.S. institutions including the Federal Reserve, the Treasury Department and the White House.
The collaborative effort is a response to the growing need for regulatory clarity as the use of stablecoins expands.
Moreover, Waters and Patrick McHenry (R-N.C.), the Chairman of the House Financial Services Committee, have been in discussions for nearly two years and have even engaged Senate Majority Leader Chuck Schumer(D-N.Y.) in efforts to accelerate the bill.
Their strategy includes attaching the stablecoin legislation to the indispensable Federal Aviation Administration reauthorization bill due next month.
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Why It Matters: In the Senate, efforts parallel those in the House. Loading… Loading…
Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) recently proposed legislation that seeks to prohibit algorithmic stablecoins and requires issuers to maintain full reserve backing.
Further bipartisan discussions have occurred with Senate Banking Chairman Sherrod Brown, who earlier this month expressed a willingness to advance stablecoin legislation.
Adding to the legislative landscape, there is potential for the stablecoin bill to be coupled with marijuana banking reforms, although this may face challenges, notably from Senate Republican leader Mitch McConnell (R-Ky.).
This evolving regulatory framework for stablecoins is of keen interest to attendees of Benzingas upcoming Future of Digital Assets event on Nov. 19.
This event will delve into how new laws might shape the landscape for cryptocurrencies and other digital assets, offering a platform for experts to discuss the implications of these changes on global financial markets.
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