Lack of Regulation for Stablecoins
Since the removal of Kevin McCarthy as Speaker of the House of Representatives on October 3, there has been a lack of progress in passing legislation through the United States Congress. The Blockchain Association’s director of government relations, Ron Hammond, recently provided an update on the current state of crypto-related issues.
Hammond revealed that the race for the Speaker position has attracted several candidates who are supportive of cryptocurrencies. Additionally, three Republican lawmakers—Representatives French Hill, Bill Huizenga, and Patrick T. McHenry—have expressed their concerns to Federal Reserve Chair Jerome Powell. They claim that the central bank is impeding Congress’s efforts to regulate stablecoins.
Addressing Concerns with the Federal Reserve
In a letter to Federal Reserve Chair Jerome Powell, three Republican lawmakers have accused the central bank of hindering Congress’s attempts to regulate stablecoins. Representatives French Hill, Bill Huizenga, and Patrick T. McHenry expressed their grievances and called for action in order to address potential risks associated with stablecoins.
The lawmakers argue that stablecoins have become increasingly popular and could pose systemic risks to financial markets if left unregulated. They believe that the Federal Reserve should take a more proactive approach in working with Congress to establish clear guidelines and oversight for these digital assets.
Crypto-Friendly Candidates for Speaker Position
The race for the position of Speaker in the House of Representatives has attracted numerous candidates who are known for their pro-crypto stance. This comes after Kevin McCarthy was removed from the position on October 3, resulting in a lack of legislative progress regarding crypto-related issues.
The presence of crypto-friendly candidates vying for the Speaker position is seen as a potential opportunity for advancing favorable legislation in the cryptocurrency space. These candidates may push for clearer regulations, increased government support, and a more favorable environment for the development and adoption of cryptocurrencies.
Hot Take: Congress Seeks Stablecoin Regulation
With the lack of progress in passing legislation through the United States Congress, lawmakers are turning their attention to stablecoin regulation. Three Republican representatives have accused the Federal Reserve of obstructing their efforts to regulate stablecoins, citing potential risks to financial markets. As the race for the Speaker position attracts pro-crypto candidates, there is hope that favorable legislation will be pushed forward. It remains to be seen how the Federal Reserve will respond to these concerns and whether they will work with Congress to establish clear guidelines for stablecoins. The outcome of this regulatory battle will have significant implications for the cryptocurrency industry.
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