US Lawmakers Near Agreement on Long-awaited Stablecoin Legislation
Summary:
US lawmakers are reportedly nearing the approval of a stablecoin bill after months of negotiation between Democrats and Republicans. The crux of the debate revolves around the Federal Reserve's role in regulating the stablecoin sector. Representative Maxine Waters has been discussing this with the Chair of the House Financial Services Committee, Patrick McHenry, and has revealed an agreement with the Federal Reserve. The Clarity for Payment Stablecoins Act is one notable legislation concerning stablecoins. This comes in the wake of a hearing led by Secretary of the Treasury Janet Yellen, urging Congress to act promptly on cryptocurrency regulations to mitigate potential financial risks.
Legislators in the United States are believed to be on the brink of approving a much-anticipated stablecoin legislation. Representative Maxine Waters has reportedly shared with Politico on February 7 that they are nearing a decision on the stablecoin bill, emphasizing just how close they have reached to a resolution.
Negotiations regarding the legislation of stablecoin have been an ongoing discussion among Democrats and Republicans in recent times. Much of the argument has centered on the Federal Reserve's role in supervising the stablecoin sector and its responsibility in drafting regulations for stablecoin issuance. Waters stressed the importance of empowering the central bank with supervisory authority and leadership in this domain. She revealed that an agreement with the Federal Reserve has been reached, suggesting that progress is being made. The discussion between Waters and Patrick McHenry, the Chair of the House Financial Services Committee, on this matter has been taking place for nearly 20 months.
One significant draft legislation concerning stablecoins is the Clarity for Payment Stablecoins Act, introduced in Congress and sponsored by McHenry. This follows a hearing on February 6 led by Janet Yellen, the United States Secretary of the Treasury. Yellen informed the lawmakers of the necessity for Congress to promptly act on cryptocurrency regulations to either avert or at least lessen risks to investors and the overall financial platform. She underscored the pivotal role of regulations in particular areas, such as securing wallet holders and monitoring stablecoin issuers. She pointed out the existence of certain areas in need of improved consumer investor safety and financial stability risk management, where Congress could step in to address the deficiencies.
Published At
2/8/2024 3:48:02 AM
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