US House Stablecoin Bill Nears Finish Line, Democratic Leader Says

The top Democrat on the U.S. House Financial Services Committee, Maxine Waters, has indicated that a stablecoin bill could be ready soon. The latest development strengthens hopes that the U.S. can get a new stablecoin law this year, before the elections, after 22 months of negotiation between Waters and House Financial Services Committee Chairman Patrick McHenry. The bill's final version is expected to include input from the U.S. Federal Reserve, the Treasury Department, and the White House.

US House Stablecoin Bill Nears Completion, Democratic Leader Indicates

The top Democrat on the US House Financial Services Committee, Maxine Waters, has expressed optimism that a stablecoin bill could be ready for consideration in the near future. This development raises hopes that the United States will enact new legislation governing stablecoins before the upcoming elections, a prospect that was initially dismissed as unlikely.

"We are on our way to getting a stablecoin bill in the short run," Waters told Bloomberg on Wednesday. She emphasized the importance of protecting investors and ensuring that stablecoins are backed by sufficient assets.

Waters had previously criticized an earlier version of the stablecoin bill as "deeply problematic and bad for America." However, she stated that the latest version has addressed her concerns.

The progress on the stablecoin bill follows a period of intensified legislative activity in both the Senate and the House. Waters noted that the US Federal Reserve, the Treasury Department, and the White House have all provided input in the bill's development.

According to reports, Waters and House Financial Services Committee Chairman Patrick McHenry (R-N.C.) have met with Senate Majority Leader Chuck Schumer to explore the possibility of attaching the stablecoin legislation to a must-pass Federal Aviation Administration reauthorization bill scheduled for next month.

Separately in the Senate, Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) recently introduced a new stablecoin bill that would ban algorithmic stablecoins and require fully backed reserves for stablecoin issuers.

Waters also indicated that she has engaged in discussions with Senate Banking Chairman Sherrod Brown regarding stablecoins. Brown has previously expressed openness to advancing stablecoin legislation.

The possibility of pairing the stablecoin bill with a marijuana banking bill has also been raised. Brown's committee has passed the marijuana legislation, but it could face resistance from Republican leader Mitch McConnell. Waters, however, expressed confidence in overcoming any potential opposition.

In March, McHenry stated that the stablecoin bill had largely been finalized in the Republican-controlled House and awaited a scheduled floor vote.

The impending completion of a stablecoin bill marks a significant development in the US regulatory landscape for digital assets. It remains to be seen whether the bill will successfully navigate both chambers of Congress and be signed into law, but the latest progress suggests that the United States is taking steps towards establishing a comprehensive framework for stablecoins.