Just In: Stablecoin Laws Very Soon A Reality In US With This Deal?

A deal between two House lawmakers for US stablecoin rules could well be a reality soon. With the possibility of a deal agreement in coming days, regulators could soon have a framework to control stablecoin issue. If all goes as planned in the coming weeks, the deal could pass the House within next few months.

Tough Oversight & US Stablecoin Rules

As per a Wall Street Journal report, two high profile House lawmakers are likely to agree on imposing tougher oversight of stablecoins. The agreement is expected to be made very soon between democrat Maxine Waters and Republican Patrick McHenry. According to the report, if the deal is reached in coming days, the House Financial Services Committee could vote on it next week.

“If a deal is reached in the coming days, it could be voted on by Ms. Waters’ panel as early as next week, and pass the House in the coming months.”

More importantly, Treasury Secretary Janet Yellen has in the past advocated for crypto regulation. Last month, Yellen suggested that the Congress regulate which crypto assets to include in retirement vehicles.

Uncertain Path Towards Stablecoin Regulation

Meanwhile, all is not well for the lawmakers to get the deal moving in the Senate. It is not sure as of now as to how would they face calls for regulating stablecoins with existing regulatory bodies. For instance, Democrat Senator Sherrod Brown advocated for solving potential risks around stablecoins with existing legislations. Senator Brown is the chair of the U.S. banking committee.

Senator Brown did not take part in discussions on the new deal between Waters and McHenry, the report said. Meanwhile, the new bill is likely to provide a guiding light for the Fed in regulating the issuers of stablecoins. “The restrictions envisioned by the bill include prohibiting nonfinancial companies from issuing the products,” the report added.

Last month, the New York state department of financial services (DFS) issued new regulatory guidance for stablecoin regulation. The guidance sets foundational criteria for U.S. Dollar backed stablecoins under its purview, it said at the time.