US House Passes Stablecoin Regulatory Framework, Bipartisan Talks Collapse

The US House Passes Regulatory Framework for Stablecoins

The US House lawmakers have passed a regulatory framework for stablecoins, but bipartisan talks have collapsed, putting the prospects of the framework becoming law in jeopardy. The decision was divided along party lines, with Democrats and Republicans blaming each other for the lack of progress in the negotiations. The House Financial Services Committee Chair, Patrick McHenry, held the White House responsible for obstructing the negotiations, while committee Democrats accused Republicans of rushing the process without adequate consideration.

Main Breakdowns:

The regulatory framework for stablecoins was approved by the House Financial Services Committee in a divided vote.
Democrats and Republicans blamed each other for the lack of progress in the negotiations.
Democrats raised objections to the vote, claiming that Republicans rushed the process.
A separate measure related to self-custody in the crypto space also advanced past the panel.
The bill now heads for a vote on the House floor, but its prospects in the Senate are uncertain.

Hot Take:

The lack of bipartisan support for the stablecoin regulatory framework raises concerns about its prospects in the Democrat-led Senate. The bill’s advancement in the House is a significant step, but it may face challenges in gaining broader support. The main point of contention revolves around reserve provisions and the scope of federal regulators’ authority. Further discussions and negotiations will be crucial for the fate of stablecoin regulation in the US.