Stablecoin Regulation Debate Rekindled, Partisan Rifts Expose Bad Signs21. April 2023
•Lawmakers in the US House of Representatives are again looking at regulations on stablecoins under new Republican leadership, but partisan differences and bickering between the two sides may delay any agreement.
•At a recent hearing, Patrick McHenry and Maxine Waters argued that negotiations between them had not been completed and they should start over.
•Dante Disparte, representing USDC-issuer Circle, made a case for why dollar-denominated stablecoins are better than cash for use cases such as foreign aid and disaster relief.
Stablecoin Regulation Debate Rekindled
Lawmakers in the US House of Representatives have reignited debates about regulating stablecoins under new Republican leadership, with arguments concerning differences across party lines potentially delaying any agreement from being reached.
Partisan Rifts Revealed
At a hearing on „Understanding Stablecoins‘ Role in Payments and the Need for Legislation“ held this week, Republican chair Patrick McHenry suggested that a draft bill released earlier this month should be used as the foundation for federal frameworks while Democrat Maxine Waters countered that no negotiations between them had been completed and they should start again from scratch.
Case Made For Dollar-Denominated Stablecoins
Dante Disparte from Circle spoke at the hearing to make a case for why dollar-denominated stablecoins are far better than cash for use cases such as foreign aid and disaster relief. He mentioned how it was the first time ever that a comprehensive stablecoin bill was shared in response to recommendations from the President’s Working Group on Financial Markets.
Previous Agreement Reached Between Parties
Despite current unfavorable attitudes across parties lines towards reaching an agreement, there has been some common ground found before between Democrats and Republicans regarding stablecoins. This includes when both parties agreed to work together on creating regulations back in 2020 when talks first began regarding cryptocurrencies.
What The Future Holds
It remains to be seen whether or not Democrats and Republicans will be able to set aside their differences once more so they can come up with an agreement concerning regulation of cryptocurrencies like stablecoins.