Leading U.S. lawmakers from the House Financial Services Committee met with Senate Majority Leader Chuck Schumer Thursday afternoon to discuss their long-awaited stablecoin bill.
House Financial Services Committee Reps. Meet With Senator Chuck Schumer
According to Punchbowl News, Congresswoman Maxine Waters (D-CA) and Congressman Patrick McHenry (R-NC) were seen entering Schumer’s office on April 11 to pitch their yet-to-be-released stablecoin bill proposal.
Reports say McHenry and Waters discussed linking their stablecoin reform to the upcoming funding reauthorization of the Federal Aviation Administration (FAA) in hopes of securing bipartisan support.
NEWS: The two top lawmakers on the House Financial Services Committee met with Majority Leader Chuck Schumer this afternoon to discuss stablecoin reform. Lawmakers discussed whether the FAA reauthorization could be a potential vehicle for bipartisan legislation. PBN text out now. pic.twitter.com/Abcb6H7nGy
— Brendan Pedersen (@BrendanPedersen) April 11, 2024
Should the forthcoming stablecoin bill be tacked on to the FAA reauthorization, Punchbowl News reports that the strategy would be “fairly unprecedented in financial services policy.”
The Long Journey To A Stablecoin Bill
McHenry has long advocated for stablecoin reform, going so far as to draft the yet-to-be-approved “Clarity for Payment Stablecoins Act” in 2023. If passed, McHenry’s bill would see stablecoins face regulatory oversight similar to that of the traditional finance sector.
Meanwhile, Senators Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY) are planning to unveil new stablecoin legislation that would “weed out bad actors while still promoting growth and innovation” as early as this week.
According to a recent Forbes report, the upcoming legislation would allow federal and state depository institutions to become stablecoin issuers while non-depository institutions would be overseen by the federal government yet regulated at the state level.
“The bill is a product of common sense compromise,” Gillibrand said, claiming it would “help drive innovation in the cryptocurrency landscape.”
Lawmakers Face Pushback From Senator Elizabeth Warren
Despite the strong push for stablecoin reform on Capitol Hill, not all U.S. lawmakers are thrilled by the idea.
Elizabeth Warren’s letter to Congress highlights concerns about stablecoin risks and the need for strong anti-money laundering measures. Learn more about the potential impact on the banking sector and national security.#ElizabethWarren #StableCoins https://t.co/ffBVpdbRBz
— Cryptonews.com (@cryptonews) April 10, 2024
Just this week, Senator Elizabeth Warren (D-MA) wrote to McHenry and Waters to discuss the potential risks of passing such legislation without effective anti-money laundering laws in place.
“Policymakers should be weary of efforts to integrate stablecoins into the formal banking system – or extend any of the concomitant safety net protections to stablecoin issuers – without strong rules that ensure safety and soundness,” the letter states.
Warren, who has built a staunch anti-crypto reputation, is still attempting to advance the “Digital Assets Anti-Money Laundering Act” (DAAMLA) since she first proposed it in 2022.
“If we are going to create new on ramps, increasing traffic, which is exactly what the House bill does, then we need a regulatory framework that will put the rules for Anti-Money Laundering in place so that we do not have more opportunities for Iran and terrorists and drug lords and human traffickers to make more money,” she said.
It is currently unclear when McHenry and Waters will present the finalized version of their stablecoin bill, but many believe it will be sooner rather than later.
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