Maxine Waters, the top Democrat on the House Financial Services Committee, indicated that the final version of the stablecoin bill could be ready soon. In a statement to Bloomberg on Wednesday, Waters said, “We are on the way to finalizing the stablecoin bill in the short term.” Waters had previously described a version of the stablecoin bill as “extremely problematic and bad for America.”
Emphasis on Adequate Backing for Stablecoins
Speaking to Bloomberg, Waters emphasized that the bill is about ensuring that investors and citizens are protected. She also mentioned the necessity of ensuring that stablecoins are adequately backed by assets.
Recent developments are strengthening hopes for the enactment of a new stablecoin law in the US before this year’s elections. Such a development was initially seen as a distant possibility.
Stablecoin Legislation Gains Momentum
Congressional action related to stablecoin legislation has gained momentum in both the Senate and the House in recent weeks. According to Waters, the Federal Reserve, the Treasury Department, and the White House have played roles in drafting the bill.
Waters and House Financial Services Committee Chairman Patrick McHenry have discussed advancing their long-worked-on bill with Senate Majority Leader Chuck Schumer.
A New Bill Was Introduced Last Week
Last week in the Senate, US Senators Cynthia Lummis and Kirsten Gillibrand introduced a new stablecoin bill that proposes banning algorithmic stablecoins and requires issuers to fully back their tokens with reserve assets.
Waters also mentioned that she discussed stablecoins with Senate Banking Chairman Sherrod Brown, who expressed openness to advancing stablecoin legislation. In March, McHenry stated that the stablecoin bill had largely been resolved in the Republican-controlled House and only needed a scheduled floor vote.
This issue is particularly important for establishing a legal foundation for stablecoins. If the law is passed, it will address public concerns about how companies behind stablecoins support their reserves, and it will also mark significant progress for the legal framework of the cryptocurrency space.
