Lawmakers ‘very close’ to stablecoin deal: Report
US lawmakers are reportedly close to passing the long-awaited stablecoin bill after months of trying to reach an agreement with House Financial Services Committee Chairman Patrick McHenry.
“We're working on a stable coin; we're getting very close,” Rep. Maxine Waters told Politico on February 7.
NEW: Maxine Waters says a deal on statscoins is “very, very close,” according to Politico's @eleanor_mueller.
It's a big win for crypto pic.twitter.com/TfThhsuUr9.
— Zach Guzman (@zGuz) February 7, 2024
Passing the stablecoin legislation has been a topic of discussion between Democrats and Republicans in recent months. Much debate has revolved around how the Federal Reserve will regulate the stablecoin arena and write regulations regarding stablecoin issuance.
“That's what's important to me: Our central bank should have the power to regulate, and it should have the ability to dominate this issue,” Waters said.
“We worked something out with the feds, and I think it's okay.”
Waters has been negotiating the issue with House Financial Services Committee Chairman Patrick McHenry for more than 20 months.
Cointelegraph reached out to Waters for further comment but did not receive an immediate response.
Republicans have worked with RM Waters in good faith on stablecoin legislation for over 14 months.
There is no rush.
Unfortunately, Democrats would rather obstruct the committee than engage in real debate. pic.twitter.com/8qCQNUvsQj
— Financial Services GOP (@FinancialCmte) July 27, 2023
Circle CEO Jeremy Allaire recently expressed hope that the United States will pass much-needed stablecoin laws by 2024.
“Digital dollars are happening all over the world, other governments are regulating dollar digital currencies before the United States. So I think there's a very strong need to implement American leadership and involve proper consumer protections.”
The Transparency for Payments Stablecoins Act, sponsored by McHenry, is one of the more prominent stablecoin bills to enter Congress.
Related: Stablecoins pose less risk than bank deposits, says former federal policy analyst
Water's comments followed a February 6 hearing by US Treasury Secretary Janet Yellen, who told lawmakers that Congress must act quickly on cryptocurrency regulation to prevent or prevent risks to investors and the broader financial system.
The Secretary of the Treasury's regulation is “critical” for certain areas, such as protecting cryptocurrency wallet holders and controlling the conduct of stablecoin issuers.
“We have identified some gaps that would be important for Congress to act to fill in order to address concerns about consumer investor protection and financial stability.”
Journal: Unstable Coins: Debasement, Bankruptcy and Other Risks Looming.
