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Highlights
- Pro-crypto US Senators might introduce a new stablecoin bill this week.
- This comes after Coinbase CLO Paul Grewal called for an immediate introduction of a stablecoin legislation to tackle illicit crypto financing.
- The impending stablecoin legislation is aimed at fostering Bitcoin's original vision of being used as a payment mode.
During the Bitcoin Policy Summit at the National Press Club in Washington on April 9, Senator Kirsten Gillibrand of New York revealed plans for forthcoming stablecoin legislation. The aim of this legislation is to align with the original vision of Bitcoin (BTC) as a viable payment method. Collaborating with Senator Cynthia Lummis of Wyoming, Gillibrand highlighted the legislation’s intention to foster growth and innovation within the crypto industry.
What Did The Senators Say About The New Stablecoin Bill?
The US Senators also noted that the proposed stablecoin legislation will also aim to ensure regulatory oversight to eliminate bad actors. Gillibrand stated that this stablecoin legislation will unlock the “potential of crypto and the original aim of Bitcoin as a means of payment.” Last year, Lummis and Gillibrand reintroduced the Responsible Financial Innovation Act. This act aims to establish a comprehensive regulatory framework for all crypto assets.
On the other hand, the new stablecoin legislation seeks to empower both federal and state regulators to oversee stablecoin issuers. These issuers could be depository or non-depository institutions, thereby promoting safety and stability within the industry.
Gillibrand stated, “We worked with the Fed, Treasury and the New York State Department of Financial Services to allow non-depository institutions to issue stablecoins while promoting safety and soundness within the industry.”
Furthermore, she emphasized the need for a balanced approach. This approach considers the interests of federal, state, and industry stakeholders. By creating two distinct paths for stablecoin issuers, the legislation aims to provide regulatory clarity. Moreover, it also aims to preserve states’ role as primary regulators for non-bank institutions, according to a Forbes report.
Also Read: Senator Warren Stresses On AML Compliance For Crypto Validators
Senators Urge For Support From Lawmakers
In addition, negotiations continue as bipartisan and bicameral support is sought to advance the legislation. Gillibrand stressed the importance of collaboration to ensure the bill’s passage into law. Additionally, the Senator emphasized on recognizing the significance of stablecoins as a foundational regulatory step to unleash the full potential of crypto assets like Bitcoin.
Reflecting on the negotiations, Gillibrand acknowledged the need for broader support. This includes bipartisan backing from lawmakers such as Chairman Patrick McHenry and Ranking Member Maxine Waters of the House Financial Services Committee. Furthermore, it’s worth noting that McHenry echoed the sentiment at the Bitcoin Policy Summit. He underscored stablecoins’ role as a critical first step towards comprehensive crypto regulation in the United States.
Also Read: Expert Links Ripple Stablecoin Ambitions to Tether’s Success
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