Regulation
US Stablecoin Regulation Talks Stalled, But Progress Is Near
Efforts to get through US legislation on stablecoins by attaching it to an unrelated Federal Aviation Administration reauthorization bill, legislative leaders stopped their move.
What happened: Decision to seek clean bill means discussion between House Financial Services Committee chairman Patrick McHenry (RN.C.) and Rep. Maxine Waters (D-Calif.) will return to direct negotiations on a comprehensive deal, the aide noted, preferring anonymity due to the private nature of the talks, Coindesk reported.
The development underscores the seriousness of the legislative push for stablecoin oversight, with significant discussions involving key members of the Senate for the first time.
Chairman of the Senate Banking Committee Sherrod Brown (D-Ohio) has expressed a desire to combine stablecoin regulation with legislation facilitating financial services for the cannabis industry.
However, the Senate Majority Leader Chuck Schumer (DN.Y.) supports this plan, while the minority leader Mitch McConnell (R-Ky.) remains opposed.
The scenario suggests that stablecoin regulation could resurface in other crucial legislative processes, potentially related to cannabis banking reforms.
“This initiative will demonstrate the level of support in Congress for these measures and identify opposition,” Jared Seiberga TD Cowen analyst, commented in a research note.
He expects real legislative efforts to ramp up later in the year.
Previously, an infrastructure bill unexpectedly included significant crypto regulations, illustrating that the legislative vehicle for stablecoin and potentially cannabis banking reforms could also be unconventional.
Read also: Bitcoin Pulls Back: Catalyst Traders Will Watch Their Next Moves
However, no final compromise on stablecoin legislation that satisfies all parties has been reached, leading industry insiders to remain cautious.
Kristin SmithCEO of Blockchain Associationstressed the importance of legislative details.
“We look forward to reviewing and providing feedback on any new draft compromises that may emerge,” she said.
With several lawmakers having strong motivations to advance a stable bill, the outcome could have a significant impact on their political careers.
“Brown is particularly motivated to advance the SAFER Banking Act ahead of his difficult re-election campaign, aiming for a legislative victory on the popular issue of cannabis reform,”
Beacon Policy Advisors ” noted in their analysis, also emphasizing that this is a defining issue for McHenry in retirement.
And after: This legislative drama is unfolding as the digital assets industry continues to grow in importance, a topic that will undoubtedly be a talking point at Benzinga’s upcoming conference. The future of digital assets event on November 19, where the future of regulation and its impact on the industry will be key themes.
Read next: Roger Ver, “Bitcoin Jesus”, arrested in Spain for tax fraud
Image created using artificial intelligence with Midjourney.