Breaking: Republican Leaders Announce No Deal On Stablecoins In US Congress

Crypto News: U.S. Congressman Patrick McHenry on Thursday expressed disappointed over the no deal on payments stablecoins bill with Democratic Representative Maxine Waters, blaming the Democrats for “unwillingness to compromise” in negotiations. Earlier, CoinGape reported that the Financial Services Committee had in June 2023 released a draft stablecoin bill combining concepts of both Republicans and Democrats. Once passed, the bill to provide for the regulation of payments stablecoins and for other purposes would be referred to as the ‘Clarity for Payment Stablecoins Act of 2023’.

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On Thursday, Republican leader McHenry announced a no deal on stablecoins, saying he was disappointed with the Democrats’ resistance to negotiations.

Patrick McHenry Blames Democrats’ For Halt In Stablecoin Bill

According to Brendan Pedersen on Twitter, ruckus prevailed in the House Financial Services Committee over the lack of enough votes. In her initial remarks, Waters pressed for a question of consideration and a recorded vote on the subject. McHenry blamed the lack of consensus over important provisions for the no deal.

“We were closer than we have ever been. A few small but nonetheless important provisions stood between us and a deal, and it was a White House’s unwillingness to compromise that has once again brought that negotiation to a halt.”

The stablecoin payments bill places limitations on who will be permitted to issue payment stablecoin for use by any person in the United States. Also, the issuers will be required to maintain reserves backing the issuer’s payment stablecoins. The reserves shall be backed with the US currency, funds held as insured demand deposits, Treasury bills, central bank reserve deposits among others. To ensure stablecoin collapses, the bill also places condition on the issuers requiring to submit monthly certification and examination of reports by a registered public accounting firm.

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