Wednesday, October 5, 2022

US Stablecoin Bill Will Not Be Ready By August, Says Committee Chair

It appears that the United States bipartisan stablecoin bill may have to wait until after the August congressional recess. According to a statement issued by the chairwoman of the House Financial Services Committee, Rep. Maxine Waters, negotiations about the bill have been officially postponed.

‘Stablecoin bill not yet there’ – Rep. Waters

The legislation that seeks to ensure that stablecoins are well regulated in the U.S., was earlier expected to be ready in August. However, due to the banking industry pushback and some late amendments to some of its provisions, the decision to postpone is understandable. But this is even as Rep. Waters admits that a considerable amount of progress has been made so far. As part of her statement, however, she said:

“We are unfortunately not there yet, and will therefore continue our negotiations over the August recess.”

Waters also added that shortly after the recess, she is positive about a final agreement on the stablecoin bill. “I look forward to coming to an agreement in the near future and marking up bipartisan legislation when we return,” she said.

Postponements are necessary for refining

It should be noted that this is the second postponement with the bill within a week. Recall that the United States Treasury Department is also keeping a close eye on it. And earlier this week, the bipartisan effort, which is being championed by Rep. McHenry (R-N.C.) was initially delayed. Although, that was reportedly on the order of Treasury Secretary Yellen. At the time, Yellen pointed out that the bill needed to include more provisions for investor protection.

Summarily, the Treasury Department will not approve the bill unless it does its biddings. And one major way is seeking to ensure that exchanges keep investors’ funds separate from the companies’ assets. That way investors are protected, even in situations where the firm fails.

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