Stablecoin regulations in the United States may soon be the result of an agreement between two House members. In the event that a compromise is reached in the next few days, authorities will have a framework in place to manage the stablecoin problem. The deal might be passed by House within the next several months if all goes according to plan in the next weeks.
WSJ reports that two high-profile members of the House of Representatives are likely to agree to impose more stringent control on stablecoins. Democratic Representative Maxine Waters and Republican Representative Patrick McHenry are likely to reach an agreement shortly. An agreement might be made in the coming days, and the House Financial Services Committee could vote on it as early as next week, according to the report.
As soon as next week, Ms. Waters’ panel may vote on a compromise, and the House might approve it within the next few months if an agreement is achieved.
In addition, Treasury Secretary Janet Yellen has supported crypto regulation in the past. Yellen urged last month that Congress limit the inclusion of crypto assets in retirement accounts.
In the meanwhile, things aren’t going so well for the senators trying to get a deal done. As of right now, it’s unclear how they’ll respond to proposals for the regulation of stablecoins from current regulatory agencies. For example, Sherrod Brown, a Democrat Senator from Ohio, said that stablecoins should be regulated in accordance with current laws. Senator Brown heads the banking committee in the United States.
Senator Brown was reportedly absent from meetings around the new agreement reached between Waters and McHenry. In the meanwhile, the Fed will likely follow the new legislation when it comes to regulating stablecoin issuers. Non-financial firms will not be able to issue the goods under the bill’s limits, according to the article.
The New York State Department of Financial Services (DFS) announced new stablecoin regulatory advice earlier this month. As stated at the time, the advice establishes fundamental conditions for U.S. dollar-backed stablecoins that fall within its scope.