Congress Signals Tough Debates Over Stablecoins Law

Cross-party collaboration in crafting a comprehensive federal stablecoins bill in the United States deserves high marks, but ahead lie ‘tough negotiations’. This was stated by one of its authors, Representative Patrick McHenry, according to Cointelegraph.

According to the legislator, the fintech dialogue has hit a dead end, and it is necessary to return to solving real problems.

McHenry called the current situation ‘regressive’, noting that at the federal level there has yet to be a definition of digital assets and stablecoins.

At this stage, together with the chair of the House Financial Services Committee, Maxine Waters, he has managed to agree on the term ‘stable currencies’. These assets must be pegged 1:1 to a strict collateral framework and must be free of leverage, he explained.

Among unresolved issues are how stablecoins are stored, wallet regulation, and the designation of a federal regulator. In this, ‘it’s more art than science’, McHenry added.

“It has become ‘a rather ugly child’ that could grow into something more attractive,” he explained.

McHenry pledged to prioritise regulation of digital assets if appointed chair of the House Financial Services Committee after the midterm elections in November.

Back in September, Bloomberg learned of a two-year moratorium on algorithmic stablecoins in the bill regulating ‘stablecoins’.

In May, U.S. Treasury Secretary Janet Yellen, amid the TerraUSD incident, urged to enact regulation of stablecoins by the end of the year.

Her view on the importance of implementing rules for ‘stablecoins’ was supported by Michael Barr, a candidate for the vice chair of the Fed.

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