Key Congressman McHenry Is Bullish U.S. Stablecoin Law Will Pass This Year

McHenry expressed optimism during a Bitcoin Policy Institute gathering on Tuesday, stating, “I believe we’ll manage to pass and enact our stablecoin legislation. This would be an initial indication that cooperation and bipartisanship exist in the realm of digital assets.”

Senators in the United States have proposed legislation concerning stablecoins, which are digital tokens linked to stable assets like the dollar. However, the Senate Banking Committee has yet to consider any of these proposals. For the regulation to take effect, both the Senate and House of Representatives must approve it, and President Joe Biden must sign it into law.

McHenry has been working on drafting stablecoin legislation with his party members and Democrats in the House for several months. Once a bill was ready, it gained approval from some Democratic representatives. However, there have been objections from the administration and the top Democrat on the panel, Rep. Maxine Waters (D-Calif), regarding the federal government’s oversight of stablecoin issuers.

Regulating this specific area of cryptocurrencies has been a top priority for lawmakers for some time. However, their efforts have frequently encountered obstacles due to the complexities and polarization within the divided Congress.