Between Representatives Cynthia Lummis and Kirsten Gillibrand’s new stablecoin bill and Congresswoman Maxine Waters’ renewed optimism in stablecoin legislation, will a new law regulating the cryptocurrencies be enacted anytime soon?
Cody Carbone, Chief Policy Officer at The Digital Chamber, said last week that he would only give the odds of any stablecoin legislation passing before the U.S. presidential election 35%.
Carbone Pessimistic About Stablecoin Bill Passing Before Presidential Election
“It’s not nothing, but I think it’s more likely than not it doesn’t pass,” Carbone told Crypto News in an interview Thursday. “People are motivated, so that’s why I have a little hope.”
Currently, House Financial Services Chairman Patrick McHenry’s Clarity For Payment Stablecoins Act and the recently introduced Lummis-Gillibrand Payment Stablecoin Act are the two leading pieces of stablecoin legislation on the floor of Congress.
🚨@gillibrandny and I are introducing the most comprehensive stablecoin bill to date.
Crypto assets are revolutionizing the world and as the undisputed leader in financial innovation, the U.S. must embrace crypto assets, but it cannot be done without clear rules for stablecoins. pic.twitter.com/vwRUEBUdsl
— Senator Cynthia Lummis (@SenLummis) April 17, 2024
If approved, Lummis and Gillibrand’s bill would allow for both state and federal regulatory oversight of cryptocurrencies while McHenry’s bill would see non-bank stablecoin issuers to stay under state regulation, a major point of contention amongst U.S. lawmakers.
“That has really been the biggest thorn in the side to getting an agreement and I haven’t seen any progress at finding a resolution there, so that’s why I’m pessimistic that we’re going to get something done,” Carbone said.
Reps. Maxine Waters, Cynthia Lummis, And More Push For Stablecoin Reform
Carbone further notes that the push for effective stablecoin reform is reaching a “critical time” in the next few weeks as representatives dole out the last bit of legislation before returning to their “partisan camps” and seeking potential re-election.
Representatives are rushing to advance their crypto bills on Capitol Hill, with reports coming out earlier this month that Waters and McHenry recently pitched their yet-to-be-released stablecoin bill to Senator Chuck Schumer.
California Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, says the panel is on the way to getting a stablecoin bill in the short run https://t.co/T8XCD3XWMt pic.twitter.com/PGrNLBWA0g
— Bloomberg TV (@BloombergTV) April 24, 2024
According to Punchbowl News, McHenry and Waters debated tacking their stablecoin reform to the upcoming must-pass funding reauthorization of the Federal Aviation Administration (FAA) to earn bipartisan support.
Another hurdle standing in the way of establishing palatable stablecoin legislation is Senator Elizabeth Warren. She has long pushed against any regulatory framework for cryptocurrencies, particularly without the approval of her Digital Asset Anti-Money Laundering Act (DAAMLA).
“At the end of the day, they’re going to need to come together because there is going to need to be one product that passes both to get to the president’s desk,” Carbone said.
Meanwhile, all eyes will be on Washington, D.C., in the coming weeks to see whether U.S. lawmakers can compromise on stablecoin legislation before the focus shifts to the November 2024 elections.
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