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There has been a growing concern about how regulation bordering on stablecoins will eventually shape out in the US with an initial hiccup experienced when the anticipation bill designed for the unique tokens was presented in the house.
As reported earlier by Coingape, Republican Congressman Patrick McHenry said their Democratic counterparts could not come to a compromise with respect to the Bill, creating a stalemate.
Mike Novogratz Shares His Take
According to the billionaire investor and Galaxy Digital CEO, the Democrats might be shooting themselves in the foot for their attempts to block the stablecoin bill. McHenry has posited earlier that “Americans deserve clarity for payment stablecoins and there has been good faith, bipartisan work to deliver that clarity” but that Democrats are blocking the efforts made thus far.
Noting importantly that the blockage is being done at the behest of the White House, Mike Novogratz said crypto regulation, including those involving stablecoins, should not have been treated as a partisan issue.
The democrats are shooting themselves in the foot! Crypto should NOT be a partisan issue. They will lose voters as a great deal of Americans believe in progress. https://t.co/fbq6cJvyDV
— Mike Novogratz (@novogratz) July 27, 2023
Novogratz echoes the sentiments of many other vocal industry stakeholders who believe the anti-crypto war can cost the Democrats their popularity at the very eve of an election year. Stating it categorically, Novogratz said Democrats “will lose voters as a great deal of Americans believe in progress,” a sentiment he shared considering the fact that the majority of investors in the nascent industry are millennials and Gen Zs.
The blockage of the payment stablecoin bill came at the time when 6 Democratic members supported the broader crypto bill, marking a unique ambience in Congress.
Future of Crypto Regulation in the US
As far as crypto regulation is concerned in the United States, there is a clear divide among regulators, politicians and industry stakeholders.
While the industry sees the Commodity Futures Trading Commission (CFTC) as a pro-crypto regulator, the Securities and Exchange Commission (SEC) is considered a bad faith regulator that is exerting undue influence through regulation by enforcement.
Despite the differences, the general consensus is that the crypto space needs regulators and while American watchdogs may not want to trail their counterparts in Europe who have floated MiCA, the need to prevent FTX-like implosion in the near term is considered a motivation that can help bring the desired change.
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