Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The House Financial Services Committee (HFSC) was unable to come to a consensus regarding stablecoin legislation on Thursday, primarily due to several disagreements expressed by Democrats concerning the current text.
Committee Chair Patrick McHenry (R-NC) attributed the delay of the bill to the White House, while Democrats contended that Republicans were trying to hastily advance incomplete legislation.
No Compromise For Stablecoin Bill
The proposed legislation, known as the Clarity for Payment Stablecoins Act of 2023, would empower the Federal Reserve to establish requirements for stablecoin issuers, while still maintaining the authority of state-level regulators for payment stablecoins and detailing additional requirements.
After 15 months of discussions, McHenry asserted that the committee was “closer than we’d ever been” to achieving a bipartisan agreement, aside from a few “minor provisions.”
“It was the White House’s reluctance to compromise that has once again stalled negotiations,” he stated. He did not elaborate on which aspects of the bill the Biden administration had opposed.
ADVERTISEMENT
The ranking member of the agency, Maxine Waters (D-CA), criticized McHenry’s “impatience” for advancing a “seriously flawed” bill, which she claimed lacked backing from both the Treasury Department and the Federal Reserve. Previously, Federal Reserve Chairman Jerome Powell has stressed that the central bank should play a role in the industry as the ultimate authority on monetary credibility.
Related Posts
Waters argued that the bill would grant states excessive power to broaden the range of eligible reserve assets for backing stablecoins, thereby posing risks for token holders. Additionally, she mentioned that it would permit technology giants to issue their own stablecoins—a concern reminiscent of Facebook’s now-defunct stablecoin initiative, Diem.
“We too would like a real bipartisan bill,” Waters remarked in her opening statement on Thursday. “I don’t understand the urgency. Why the rush at this specific moment?”
Success of FIN21
In contrast to the stablecoin bill, the Financial Innovation and Technology for the 21st Century Act, proposed on Wednesday, successfully garnered bipartisan support. All Republicans on the committee voted in favor, along with 6 Democrats.
The bill delineates which market regulators should oversee specific cryptocurrencies and clarifies that a crypto asset can be issued in a securities transaction without being classified as a security itself.
Although crypto critics like Brad Sherman (D-CA) believed the bill was overly accommodating to the crypto sector, Congressman Ritchie Torres (D-NY) recognized that it was still significantly more advanced than the current regulations.
“This legislation is far from perfect, but it represents a good-faith effort to establish clarity where none exists,” Torres stated. “I will not allow perfect to be the enemy of good.”
SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
