Rep. Waters proposes stablecoin rules, federal oversight
Each Home Republicans and Democrats have launched proposals to control U.S. stablecoins, signaling that the sector is a legislative precedence underneath President Donald Trump.
Maxine Waters, the rating Democrat on the Home Monetary Companies Committee, revealed a proposal for stablecoin oversight by way of federal watchdogs such because the Workplace of the Comptroller of the Forex, the Federal Deposit Insurance coverage Company, and the Federal Reserve, according to Punchbowl Information.
Waters’ dialogue draft additionally outlines regulatory frameworks for state regulators. Again in 2022, Rep. Waters criticized a Republican-led Home Committee invoice, calling it “deeply problematic” because of considerations over permitting state regulators to approve stablecoins with out Federal Reserve oversight. On the time, she argued earlier than former Committee Chair Patrick McHenry that this strategy might introduce unexpected dangers.
Rep. Waters’ proposal signifies that each Republican and Democratic lawmakers have now launched stablecoin rules since President Trump took workplace.
Final week, Rep. French Hill, the brand new Republican Chair of the Home Monetary Companies Committee, submitted a draft invoice for stablecoin regulation, co-sponsored by Rep. Bryan Steil. The invoice would grant the OCC authority to approve and supervise cost stablecoin issuers.
Particularly, the OCC can license and oversee nonbank stablecoin operators with federal permits. The principles might enable corporations like Ripple to enter the $220 billion market.
Rep. Hill’s invoice contrasts with Rep. Waters’ proposal, because it assigns stablecoin oversight to the OCC somewhat than the Federal Reserve, which Waters had advocated. Waters beforehand said that Home lawmakers wanted a “grand cut price on stablecoins” to maneuver ahead with regulation.
Within the Senate, GOP Senator Invoice Hagerty additionally introduced the “Guiding and Establishing Nationwide Innovation for U.S. Stablecoins” Act. Policymakers additionally unveiled a bi-cameral working group targeted on passing crypto regulation at a press convention hosted by White Home AI and crypto czar David Sacks.
