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Last year, we witnessed numerous disasters in the cryptocurrency markets, and after each major event, we saw the same things happening. Investors lost billions of dollars directly and indirectly. US officials stated the need for the fastest possible preparation of crypto regulations. However, even after almost a year, there are no tangible laws in effect.
Obstacles for Cryptocurrencies
Crypto regulations have not arrived in the US yet, and it has been revealed that the ongoing efforts have been hindered by the White House. While the members of the House of Representatives failed to reach a bipartisan agreement on stablecoin regulations, Chairwoman of the Financial Services Committee, Patrick McHenry, pointed out the White House’s intransigence regarding the ongoing deadlock.
McHenry stated that he was “disappointed” but did not reveal the details of the disagreement with the executive body. Waters stated that the bill was “extremely problematic and bad for America” and that it “encouraged a race to the bottom by creating 58 different licenses.” She also mentioned that it allowed issuers to include a wide variety of assets in their reserves and allowed major companies such as Meta and Walmart to issue their own currency.
Waters highlighted the lack of oversight by the Federal Reserve and the absence of provisions regarding diversity and inclusivity.
Stablecoin Law
The discussions on the ongoing stablecoin bill proposed by Republicans became quite heated. While Republicans tried to advance the law, Democrats tried to slow them down by paying attention to every procedural detail. The ongoing deadlock in US stablecoin oversight is emphasized by the committee’s clear effort to openly negotiate the details of the bill, as it probably requires bipartisan support to progress in the Senate.
Waters stated that neither the Fed nor the US Treasury Department supported the bill in its current form. During the debate, Stephen Lynch proposed postponing the vote until September, stating that Democrats did not have enough chance to present their ideas.
“We haven’t had a meaningful opportunity to change this bill… it’s a disgrace. We want our voices to be heard and we want to express our opinions on this matter.”
The stablecoin law, introduced by McHenry last week, aims to provide a regulatory framework for cryptocurrencies pegged to fiat currencies. As the disagreement between the two parties continues, it seems that crypto investors will now have to wait until after the November 2024 elections. The Republicans hold the majority in the House of Representatives, while the situation is the opposite in the Senate. Therefore, it seems impossible for the bill to reach Biden without a compromise, and even if it does, obtaining approval appears unlikely.
