Stablecoin Bill Unlikely to Get Pinned to FAA Reauthorization, Putting Effort On Hold Again

This week, U.S. lawmakers held intense discussions regarding the potential inclusion of stablecoin regulation in the Federal Aviation Administration (FAA) reauthorization bill. However, attempts to add this issue to the FAA legislation were met with opposition from leaders advocating for a “clean” bill. As a result, the primary negotiations between House Financial Services Committee Chair Patrick McHenry (R-N.C.) and its top Democrat, Rep. Maxine Waters (D-Calif.), will resume in order to finalize a deal on stablecoin regulation, according to an anonymous aide.

Despite the ongoing efforts to regulate stablecoins, it’s becoming increasingly clear that this significant sector of the cryptocurrency market is moving closer to being brought into the spotlight.

For the first time, the required senators initiated talks. The head of the Senate Banking Committee, Sherrod Brown (D-Ohio), has expressed readiness to combine stablecoin regulation with his efforts to pass legislation allowing cannabis companies access to the financial system. This proposal seems to have Schumer’s (D-N.Y.) support, but McConnell (R-Ky.) remains opposed to marijuana banking.

The amount of energy dedicated to this issue right now indicates that stablecoins could reemerge in Congress once other mandatory bills are addressed, potentially in conjunction with the widely publicized marijuana legislations.

As a researcher at TD Cowen, I believe that this upcoming push will shed light on the level of support for these bills in Congress and which members may remain opposed. This initiative provides valuable insights into potential outcomes for these legislative efforts later this year when we anticipate a more intense drive for enactment.

In simpler terms, a bill or legislation dealing with stablecoins and potentially marijuana doesn’t need to be logical or clear-cut in its construction. Previously, the most significant action against cryptocurrencies was included in an infrastructure bill.

As a crypto investor, I’m keeping a close eye on the ongoing negotiations regarding the stablecoin bill. However, a definitive compromise version that satisfies all parties and passes through both chambers still eludes us. Therefore, I’m holding back on my enthusiasm and waiting for a clearer picture before making any decisions.

“Just like every law has hidden complexities, Kristin Smith, the CEO of the Blockchain Association, expressed this perspective in her conversation with CoinDesk. She is eager to examine and offer suggestions on any fresh compromise drafts that surface.”

At this stage, multiple lawmakers could have major incentives to make a stablecoin bill happen.