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U.S. Stablecoin Regulation Proposals Gain Momentum
Both House Republicans and Democrats have introduced proposals to regulate U.S. stablecoins, signaling a legislative priority in the sector. Maxine Waters, the ranking Democrat on the House Financial Services Committee, has published a proposal for stablecoin oversight through federal watchdogs such as the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve.
Waters’ discussion draft outlines regulatory frameworks for state regulators, addressing concerns over allowing state regulators to approve stablecoins without Federal Reserve oversight. This approach has been criticized for potentially introducing unforeseen risks. The proposal marks a significant development in the sector, as both Republican and Democratic lawmakers have now introduced stablecoin regulations.
Contrasting Proposals
Rep. French Hill, the new Republican Chair of the House Financial Services Committee, has submitted a draft bill for stablecoin regulation, co-sponsored by Rep. Bryan Steil. The bill would grant the Office of the Comptroller of the Currency (OCC) authority to approve and supervise payment stablecoin issuers. In contrast, Rep. Waters’ proposal assigns stablecoin oversight to the Federal Reserve.
The OCC would be able to license and oversee nonbank stablecoin operators with federal permits under Rep. Hill’s bill. This could allow firms like Ripple to enter the $220 billion market. The differing proposals highlight the need for a “grand bargain on stablecoins” to move forward with regulation, as stated by Rep. Waters.
Senate and Working Group Developments
GOP Senator Bill Hagerty has introduced the “Guiding and Establishing National Innovation for U.S. Stablecoins” Act in the Senate. Additionally, policymakers have unveiled a bi-cameral working group focused on passing crypto regulation.
“The introduction of these proposals marks a significant step forward in the regulation of U.S. stablecoins. As the sector continues to evolve, it is essential that policymakers work together to establish a clear and effective regulatory framework.”
Key Takeaways
• Both Republican and Democratic lawmakers have introduced stablecoin regulation proposals.
• Rep. Waters’ proposal assigns stablecoin oversight to the Federal Reserve, while Rep. Hill’s bill grants authority to the OCC.
• The OCC would be able to license and oversee nonbank stablecoin operators with federal permits under Rep. Hill’s bill.
• The proposals highlight the need for a “grand bargain on stablecoins” to move forward with regulation.
• A bi-cameral working group has been established to focus on passing crypto regulation.
Stay Up-to-Date with the Latest Crypto News
For more news and updates on the cryptocurrency sector, visit Global Crypto News. Stay informed about the latest developments in stablecoin regulation and the evolving crypto landscape.
