Odaily Planet Daily News: The Republican and Democratic leadership in the United States have recently proposed their own ways of regulating stablecoins. Last week, the Chairman of the House Financial Services Committee, French Hill, released a legislative draft that proposed giving the Office of the Superintendent of Currency the power to "approve and supervise qualified non bank stablecoin issuers for federal payments," rather than providing a federal pathway through the Federal Reserve for "payment stablecoin issuers.
On Monday, Maxine Waters, a senior Democrat and California Congressman on the committee, released a discussion paper that included wording regarding the federal regulatory agency for stablecoins.
Former CFTC Chairman Timothy Massad testified at Tuesday's hearing, criticizing the Republican led stablecoin bill and stating that it has some shortcomings, including weaker standards in states and the federal government's lack of ongoing oversight of states, bluntly stating that "this is a prescription for creating chaos
Since 2022, Waters has been working with Patrick McHenry, the current chairman of the House Financial Services Committee and a Republican from North Carolina, to develop a regulatory framework for stablecoins. Last year, a Republican led committee passed a bill. At the time, Waters called the bill "seriously problematic" because one provision allowed state regulators to approve stablecoin issuances without the Fed's opinion.
Waters said on Tuesday, "I believe this legislation provides the best foundation for pushing the federal framework into law
Ji Kim, Chairman and Acting CEO of the Crypto Innovation Committee, stated in a prepared testimony that stablecoins are rapidly gaining popularity. Kim also called on Congress to establish requirements that stablecoin issuers must comply with, including appropriate registration, reserve requirements, redemption procedures, general provisions prohibiting re collateralization, compliance with BSA (Bank Secrecy Act), and so on
Investment bank TD Cowen stated that Hill's discussion draft is "feasible," but noted that future negotiations may be partisan and will only be reached after Congress deals with the expiring tax cuts by the end of this year.
The TD Cowen Washington research group led by Jaret Seiberg also stated that Waters' bill would give the Federal Reserve power over non bank issuers. Seiberg wrote in a report on Monday: 'We believe that the Waters and Hill bills are close enough that reaching an agreement is feasible.'. The obstacle is political, as President Trump's attempt to shut down the Consumer Financial Protection Bureau has made it difficult for Democrats to reach an agreement with Republicans. This is another reason why we believe we will not take action soon （The Block）
