Despite the threat of a government shutdown, the Stablecoin Act stands out

Patrick McHenry, chairman of the House Financial Services Committee, gave the signal on Friday A stable coin Even though a government shutdown is looming on the horizon, regulation is still top of mind.

“Things are complicated right now,” McHenry said, addressing a crowd in New York at a forum organized by the Statcoin Issuer Club. But I will do my best to get this to the President's desk.

Stablecoins are digital assets pegged to the value of a sovereign currency such as the US dollar. And, while states like New York have frameworks in place for issuing stablecoins, the idea of ​​federal rules for stablecoins has been on Capitol Hill for years.

McHenry's confirmation comes amid threats of a shutdown that could halt parts of the US federal government. If lawmakers fail to reach an agreement, the funding delay could be lifted as soon as Saturday, per CNN.

The Stablecoins Act is one of two digital assets bills that McHenry's committee has worked on this year. Another bill focuses on market structure and clarifies digital asset regulation between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

If the Republican-led House passes legislation, it still has to go through the Democrat-controlled Senate and get Biden's signature before it becomes the law of the land. Still, McHenry said he's had “conversations with some really smart senators on both sides” who might lend a hand.

“Congress is actually slower than anyone would like,” McHenry said. “So we're working on those options.”

The goal is to reach an agreement between now and the beginning of the year that would send digital asset regulation to President Biden's desk, McHenry said. As for the stablecoin legislation, he noted that “more than a few” Democrats supported the bill. Produced In July.

In addition to the benefits of making payments, McHenry highlighted the potential for the dollar's stable coin to spread far and wide. Additionally, stablecoins backed one-to-one by cash reserves are a “very simple product,” he said.

According to Christine Smith, CEO of the Blockchain Association They spoke Decrypt Last week, Republicans and Democrats agreed on most of the stablecoin bill's text. But the state-level road was an alternative barrier that would provide employment for stable coiners.

When it comes to the role states can play in regulating stablecoins versus the federal government, McHenry suggested the tension goes beyond crypto itself. But states aren't waiting for federal lawmakers to make up their minds. According to LegiScan, there are currently 17 stable coin bills pending in state legislatures.

“This is a broader regulatory issue than digital assets,” he said, adding that lawmakers' innovative approach should include individual rights. “There is power in the United States. If you don't like the state you live in, […] You can move.”