US Congressman Reaffirms Commitment to Regulating Stablecoins
The Chair of the US House of Representatives’ Financial Services Committee, Patrick McHenry, has reiterated his dedication to regulating stablecoins. Despite the potential for a government shutdown, McHenry expressed his determination to advance stablecoin regulation and have it signed into law by President Biden. Speaking at a forum organized by stablecoin issuer Circle in New York, McHenry stated, “Things are complicated right now. But I’m gonna do my best to get this to the president’s desk.” The commitment to stablecoin regulation was made prior to lawmakers reaching a compromise to avoid a government shutdown.
Two Digital Asset Bills
This year, McHenry’s House Financial Services Committee has produced two bills related to digital assets. One bill focuses on stablecoins, while the other clarifies digital asset oversight between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). If the House passes stablecoin legislation, it would still require approval from the Senate and President Biden.
Bipartisan Support
McHenry expressed optimism regarding bipartisan support for the bills, mentioning conversations with senators from both parties who may back them. While acknowledging Congress’s slow decision-making process, McHenry aims to finalize digital asset regulation before the start of next year with support from several Democrats.
Role of the US Dollar
McHenry emphasized the importance of dollar-denominated stablecoins in extending the influence of the US dollar globally. He also highlighted that stablecoins backed by cash reserves are relatively straightforward financial products. Regarding regulation by states versus the federal government, McHenry stated that this is part of a broader regulatory issue beyond cryptocurrencies. He noted that individuals have the power to move if they disagree with their state’s regulations.
Hot Take: Stablecoin Regulation Gains Momentum in the US
The commitment of US Congressman Patrick McHenry to regulating stablecoins demonstrates the growing momentum for cryptocurrency regulation in the United States. With two digital asset bills under consideration, there is a push to clarify oversight and establish clear guidelines for stablecoins. McHenry’s optimism about bipartisan support and his goal to finalize regulation by next year further indicates the seriousness with which policymakers are approaching this issue. As stablecoins play a significant role in extending the influence of the US dollar globally, it becomes crucial to establish a regulatory framework that balances innovation and stability. The future of stablecoin regulation in the US looks promising as policymakers work towards ensuring consumer protection and fostering a supportive environment for digital assets.
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