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Key Legislators from House Financial Services Committee Confer with Chuck Schumer Regarding Stablecoin Legislation: Punchbowl News
Prominent U.S. legislators from the House Financial Services Committee convened with Senate Majority Leader Chuck Schumer on Thursday afternoon to deliberate on their anticipated stablecoin legislation, as reported by Punchbowl News.
House Financial Services Committee Representatives Confer With Senator Chuck Schumer
As per Punchbowl News, Congresswoman Maxine Waters (D-CA) and Congressman Patrick McHenry (R-NC) were observed entering Schumer’s office on April 11 to present their forthcoming stablecoin bill proposal.
Reports indicate that McHenry and Waters deliberated on the possibility of linking their stablecoin reform to the impending funding reauthorization of the Federal Aviation Administration (FAA) in an effort to garner bipartisan backing.
NEWS: The two leading lawmakers from the House Financial Services Committee met with Majority Leader Chuck Schumer this afternoon to discuss stablecoin reform. They explored whether the FAA reauthorization could serve as a potential vehicle for bipartisan legislation. PBN text out now. pic.twitter.com/Abcb6H7nGy
— Brendan Pedersen (@BrendanPedersen) April 11, 2024
If the upcoming stablecoin bill is attached to the FAA reauthorization, Punchbowl News notes that this approach would be “fairly unprecedented in financial services policy.”
The Extended Path to a Stablecoin Bill
McHenry has consistently championed stablecoin reform, even drafting the yet-to-be-approved “Clarity for Payment Stablecoins Act” in 2023. Should it be enacted, McHenry’s proposal would subject stablecoins to regulatory oversight akin to that of the traditional finance sector.
At the same time, Senators Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY) are preparing to introduce new stablecoin legislation that aims to “eliminate bad actors while still fostering growth and innovation” as early as this week.
A recent report from Forbes suggests that the forthcoming legislation would permit federal and state depository institutions to act as stablecoin issuers, while non-depository institutions would be regulated by the federal government but overseen at the state level.
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“The bill is a product of common sense compromise,” Gillibrand stated, asserting it would “help drive innovation in the cryptocurrency landscape.”
Lawmakers Encounter Opposition From Senator Elizabeth Warren
Despite the strong advocacy for stablecoin reform on Capitol Hill, not all U.S. lawmakers are supportive of the initiative.
Elizabeth Warren’s letter to Congress underscores concerns regarding stablecoin risks and the necessity for robust anti-money laundering measures. Learn more about the potential effects on the banking sector and national security. #ElizabethWarren #StableCoins https://t.co/ffBVpdbRBz
— Cryptonews.com (@cryptonews) April 10, 2024
This week, Senator Elizabeth Warren (D-MA) reached out to McHenry and Waters to express her concerns about the potential dangers of enacting such legislation without adequate anti-money laundering regulations in place.
“Policymakers should be cautious of efforts to integrate stablecoins into the formal banking system – or extend any of the associated safety net protections to stablecoin issuers – without stringent rules that ensure safety and soundness,” the letter asserts.
Warren, who has established a strong anti-crypto stance, continues to push for the “Digital Assets Anti-Money Laundering Act” (DAAMLA) since its initial proposal 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 establish the rules for Anti-Money Laundering to prevent further opportunities for Iran, terrorists, drug lords, and human traffickers to profit,” she stated.
It remains uncertain when McHenry and Waters will unveil the finalized version of their stablecoin bill, but many anticipate it will occur soon.
The post Leading Lawmakers From House Financial Services Committee Meet With Chuck Schumer To Discuss Stablecoin Bill: Punchbowl News appeared first on Cryptonews.
