Cryptocurrency-friendly Senator Bill Hagerty has released a discussion draft of a bill to create a regulatory framework for stablecoins, much like the work being done in the House of Representatives.
The Tennessee Republican said his draft bill “provides much-needed clarity.” name On Thursday. This draft is very similar to the Clarity for Payment Stablecoins Act, worked on in the House by Representatives Patrick McHenry (R-N.C.) and Maxine Waters (D-Calif).
“This is Senator Hagerty’s version of McHenry-Waters,” a spokesperson for Senator Hagerty said in an emailed statement to The Block. Hagerty is also a member of the Senate Banking Committee, which has jurisdiction over major institutions, including the U.S. Securities and Exchange Commission. charge.
Sen. Hagerty’s draft bill retains the structure of the House bill while splitting it so that the Federal Reserve would cover banks and the Comptroller of the Currency would cover non-banks, a spokeswoman said.
Hagerty’s draft bill would include a provision that would allow issuers exceeding the $10 billion limit to receive immunity from federal regulators and remain under the jurisdiction of their states. The draft bill also includes provisions on how to maintain reserves on a one-to-one basis with the US currency.
“Stablecoins have the potential to not only improve transaction and payment systems, but also help create new demand for U.S. Treasury bonds as we work to address unsustainable deficits,” Senator Haggerty said in a statement. “There is,” he said. “For too long, the lack of clear regulation has hindered the benefits and broad promise of stablecoins.”
Negotiations surrounding passage of stablecoin legislation have become complicated on Capitol Hill over the past few years. House Financial Services Chairman McHenry and Waters, the committee’s top Democrat, are preparing legislation to create a regulatory framework for stablecoins starting in 2022. The bill passed a Republican-led committee last year but did not make much progress. traction. At the time, Waters called the bill “a serious problem.” supply This allows state regulators to approve stablecoin issuance without input from the Federal Reserve.
But things may have changed in the past month. congressional hearing Rep. Waters said he wants to have a “grand compromise on stablecoins” before the end of the year. Waters said the bill would place the Federal Reserve in a “dominant role” and that stablecoins should be backed by safe reserves, such as short-term Treasury bills.
“I’ve made a public statement about bipartisanship, and we’ll see what you do with it,” Waters told McHenry in late September.
Cody Carbone, president of The Digital Chamber, said the advocacy group was “encouraged” by the release of the draft bill.
“The opportunities for passage in this Congress are limited, but Senator Hagerty’s efforts have revitalized the discussion,” Carbone said in a statement to The Block. “The push for a U.S. stablecoin regulatory framework is bipartisan, and we urge lawmakers to prioritize this important, common-sense legislation by the end of the year.”
Ron Hammond, director of government relations at the Blockchain Association, called Senator Hagerty’s draft a “significant development,” especially since McHenry and Waters have spoken about pushing for stablecoin legislation before the end of the year.
“The election results will largely determine what lame duck areas are possible, but Republicans will likely take back the Senate, and this effort by Sen Hagerty could be the starting point for a Republican-led Senate Banking Committee in 2025. If stablecoins are not processed in a lame duck,” Hammond said in a statement to The Block.
Update: 10:15 PM UTC, October 10, with comments from Carbone and Hammond
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