Senator Sherrod Brown Plans Major Advance on Nation's Stablecoin Legislation
Summary:
Sherrod Brown, chair of US Senate's Banking Committee, plans to advance a major bill linked to stablecoins, aligning it with the legislation related to marijuana firms and the retraction of bankers' compensation. Despite support from Congressional and industry leaders, lawmakers have struggled to push forward bills addressing regulatory concerns around stablecoins. A proposed bill, Clarity for Payment Stablecoins Act, saw slight progress in July 2023 but has remained relatively stagnant since. With the potential introduction of digital asset-related legislation in 2024, an election year, the political landscape could significantly impact future crypto-related legislation.
Sherrod Brown, the leader of the US Senate's Banking Committee, has disclosed a strategic plan to move a substantial bill related to stablecoins by aligning it with the legislation concerning marijuana firms and the retraction of bankers' remuneration. As per a report by Bloomberg on April 16, Brown revealed his willingness to pass the stablecoin legislation in Congress provided his reservations are met. His proposed scheme includes executing the stablecoin bill alongside laws permitting banks to do business with marijuana firms and recuperation for executives of bankrupt financial establishments. Information source: Yahoo Finance
Legislators in the US House of Representatives and the Senate have generally struggled to push bills to tackle regulatory issues around stablecoins, despite encouragement from quite a few Congress and industry leaders. Maxine Waters, the House Financial Services Committee's senior member, said in February that the two main parties were nearing a compromise on a bill about stablecoins. A similar push towards legislation is being spearheaded in the Senate by a bipartisan group led by Republican Cynthia Lummis and Democrat Kirsten Gillibrand.
Several members from both the main political parties and both wings of Congress have expressed worries about setting the right framework for stablecoins in a holistic bill. In July 2023, the Clarity for Payment Stablecoins Act, one proposed bill in the House, proceeded out of committee ready for a full floor vote. However, the progress of the legislation has since been lethargic, to say the least.
An interesting dynamic in 2024 could be the introduction of digital asset-related legislation, where lawmakers will have to address the varying opinions of their constituents in an election year when the reins of the House, Senate, and the Presidency are all in play.
Usually vocal about the risks associated with digital assets during committee hearings, Senator Brown is likely to contest for his Ohio seat against Republican candidate Bernie Moreno. Meanwhile, House Financial Services Committee chairman Patrick McHenry, confirmed in December his plans to not run for re-election. The changes in these crucial positions could well influence the future course of crypto-related legislation from 2025 onwards.
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Published At
4/17/2024 12:52:20 AM
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