Stablecoin Bill Achieves Consensus

U.S. Representative Maxine Waters has expressed optimism that lawmakers are nearing a consensus on stablecoin legislation. In an interview with Politico Pro on February 7, Waters stated that negotiators are “very, very close” to reaching an agreement on how to regulate stablecoins, which are cryptocurrencies tied to assets like the U.S. dollar. This marks a significant step forward in the ongoing discussions between Waters, the House Financial Services ranking member, and Committee Chairman Patrick McHenry (R-N.C.).
Last April, the U.S. House Financial Services Committee introduced a bill aimed at regulating stablecoin issuers. According to a note on the Committee’s website, implementing federal legislation for stablecoins would reduce the costs associated with their issuance for companies. The authors of the bill believe that these digital payment tools can enhance efficiency but also carry significant risks.
In light of the rapid growth of the cryptocurrency market and the associated risks and opportunities, U.S. authorities recognize the need for legislative oversight, citing the collapses of Terraform Labs and FTX as examples.