House Panel Advances Stablecoin Legislation with Support from Traditional Finance
The recent congressional hearing on stablecoins featured significant testimonies from traditional finance representatives, indicating increasing momentum for crypto legislation. Key points include:
- Randy Guynn from Davis Polk & Wardwell advocated for the STABLE Act, proposing that stablecoin issuers meet bank-like safeguards.
- Guynn stated that stablecoins could be as secure as insured bank deposits if backed by proper reserves and capital buffers.
- Caroline Butler from BNY Mellon emphasized the need for regulatory clarity to foster trust in the custody of digital assets.
- The political landscape is shifting, with bipartisan support strengthening for crypto-related legislation, as demonstrated by a recent Senate vote against an IRS crypto rule.
- Maxine Waters called for revisiting prior bipartisan agreements on stablecoin regulation, while other lawmakers acknowledged a shift toward regulatory action.
- Senator Bill Hagerty's GENIUS Act is set for markup in the Senate Banking Committee.
- Legislation to ban the creation of a U.S. central bank digital currency (CBDC) is also being considered, driven by Republican opposition citing privacy concerns.
This convergence of traditional finance and crypto advocacy may enhance the prospects for stablecoin regulations.