Stablecoin bill has ‘outside chance’ of finalizing this year

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There is a small chance the U.S. House of Rep­re­sen­ta­tives could pass the bill to reg­u­late sta­ble­coins by year-end, though it’s more like­ly it will pass in the first quar­ter of 2023, says U.S. Con­gress­man War­ren Davidson. 

Accord­ing to a Thurs­day report from Kit­co, David­son made the remarks at the Annu­al Fin­tech Pol­i­cy Forum on Sept. 22, where he suggested: 

“There’s an out­side chance we find a way to get to con­sen­sus on a sta­ble­coin bill this year.”

The “sta­ble­coin bill” seem­ing­ly refers to draft leg­is­la­tion aimed at “endoge­nous­ly col­lat­er­al­ized sta­ble­coins” which came to light this week — and would place a two-year ban on new algo­rith­mic sta­ble­coins such as Ter­raUSD Clas­sic (USTC).

How­ev­er, David­son went on to say that while “there’s a chance we get to yes on sta­ble­coins this year,” it’s some­thing that can be achieved by the first quar­ter of 2023. 

“If we don’t, it’s some­thing that I think we can get to with a Repub­li­can major­i­ty in Q1 next year,” he said. 

David­son is wide­ly seen as cryp­to-friend­ly and has pre­vi­ous­ly intro­duced the “Keep Your Coins” bill which aimed to pro­tect self-cus­todied cryp­to wal­lets from U.S. gov­ern­ment control.

A num­ber of bills aimed at reg­u­lat­ing sta­ble­coins have been intro­duced in the U.S., such as the one that was intro­duced on Feb. 15 this year by U.S. Rep. Josh Gottheimer.

The Direc­tor of the Con­sumer Finan­cial Pro­tec­tion Bureau (CFPB), Rohit Chopra, also report­ed­ly spoke at the event and believes that sta­ble­coins have the poten­tial for wide­spread adop­tion, noting: 

A sta­ble­coin, rid­ing the rails of a dom­i­nant pay­ments sys­tem or a mobile OS, I think that could cre­ate ubiq­ui­ty very quickly.

Chopra added that if sta­ble­coins do see this kind of rapid adop­tion, they could have a seri­ous impact on glob­al finan­cial stability.

Relat­ed: 3AC founders reveal ties to Ter­ra founder, blame over­con­fi­dence for collapse

The CFPB direc­tor also sug­gest­ed that Wash­ing­ton may be neglect­ing oth­er areas of fin­tech devel­op­ment due to its intense focus on cryp­to in recent months.

The forum was attend­ed by finan­cial giants such as Bank of Amer­i­ca, Visa and Mas­ter­card and was report­ed­ly aimed at fos­ter­ing dis­cus­sion between exec­u­tives and pol­i­cy­mak­ers as to how they can work togeth­er to ensure devel­op­ing tech­nolo­gies help busi­ness­es, con­sumers and the economy.

The cur­rent draft bill for sta­ble­coins is being nego­ti­at­ed between House Finan­cial Ser­vices Com­mit­tee Chair Max­ine Waters and the committee’s top Repub­li­can, Rep. Patrick McHenry.

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