The US House Financial Services Committee’s digital assets panel was engulfed in differing opinions during its recent hearing on stablecoin regulations, which highlighted fundamental divides between Republican and Democratic ideas. Notably, Rep. French Hill (R-Ark.) advocated for stronger state regulators’ positions, while Rep. Maxine Waters (D-Calif.) pushed for a lead role for the Federal Reserve.
Despite these differing opinions, Hill emphasized that there were significant similarities between the two proposals, claiming the lawmakers were not that far apart. However, Waters and Rep. Stephen Lynch (D-Mass.) expressed concerns over key missing aspects in the Republican language, suggesting the gap may be more significant than Hill believes.
Stablecoins, such as Tether’s USDT and Circle Internet Financial’s USDC—pegged to steady assets like the US dollar—play a critical role in cryptocurrency markets. Both parties are aligned in addressing risks to consumers and maintaining the US dollar’s role in global commerce. Dollar-denominated stablecoins regulated in the US could aid in achieving this goal.
One positive aspect for the crypto industry is the heightened attention to stablecoin regulations and wider crypto topics by US lawmakers. Congressional hearings on these topics have flourished recently, with both House and Senate members advocating for action. If a stablecoin compromise can be reached, it would mark a significant first step toward US oversight of the industry.
That said, any legislation would still need to pass through the Senate Banking Committee—whose chairman, Sen. Sherrod Brown (D-Ohio), has not indicated any interest in moving a bill forward.
The hearing also delved into the debate surrounding central bank digital currencies (CBDCs) and the potential issuance of a digital dollar in the US. Rep. Hill, collaborating with Rep. Jake Achincloss (D-Mass.), introduced a bipartisan bill to ban the Federal Reserve from issuing the government token. They cited privacy concerns as the reason for this proposed ban.
However, Florida Governor Ron DeSantis’ recent bill to ban any US CBDC from being accepted as “money” in Florida has been criticized by legal experts, who argue it would have
Source: Coindesk
