Stablecoin Bill Could be Ready for the U.S. House Soon Says Top Democrat Maxine Waters: Bloomberg

According to U.S. House Representative Maxine Waters (D-California), who is the top Democrat on the House Financial Services Committee, we may see a completed version of the stablecoin bill relatively soon. She shared this optimistic update with Bloomberg on Wednesday.

Previously, Waters expressed concerns over an earlier version of the stablecoin legislation, labeling it as “problematic for America” and not in its best interest.

“Waters stated to Bloomberg that it’s crucial to safeguard both investors and the general public. We must guarantee that they possess sufficient assets to support the stability of crypto assets like stablecoins.”

Recent progress increases optimism that the United States will pass a new stablecoin law prior to this year’s elections, an outcome once thought unlikely at the beginning of the year.

The momentum for stablecoin regulation in the Senate and House of Representatives has gained ground over the past few weeks. According to reports, input has been provided by the U.S. Federal Reserve, the Treasury Department, and the White House in drafting the proposed legislation, as stated by Waters.

After nearly two years of talks, Representative Patrick McHenry (R-N.C.), head of the House Financial Services Committee, and his negotiating partners are reportedly seeking to advance their legislation by linking it to an imminent Federal Aviation Administration reauthorization bill, which is set for renewal next month.

Last week, Senators Cynthia Lummis and Kirsten Gillibrand, both representing the Senate in the United States, presented a new bill regarding stablecoins. This legislation aims to prohibit algorithmic stablecoins and insists that the tokens issued by companies must be completely backed by reserve assets.

Water shared with Bloomberg that she had held talks about stablecoins with Senate Banking Committee Chair Sherrod Brown. Recently, Brown expressed his readiness to push for legislation on stablecoins with Bloomberg.

A bill allowing marijuana businesses to access banking services might be combined with proposed stablecoin legislation. The marijuana bill has progressed in Brown’s committee but could encounter resistance from McConnell, the Republican leader. Nevertheless, Waters expressed optimism that they could overcome any potential opposition.

McHenry mentioned in March that the bill on stablecoins had been primarily finalized in the Republican-led House and was simply awaiting its scheduled vote on the floor.