The new Digital Assets, Financial Technology and Inclusion Subcommittee of the U.S. House of Representatives Financial Services Committee listened to the input of five experts to consider two proposed bills to regulate stablecoins.
Two draft bills were discussed before the subcommittee. The Republicans' bill was published in April before a session on stablecoins in the Financial Services Committee. Senior member Maxine Waters later submitted a competing bill based on a bill that was presented at the last session of Congress but was not passed.
What is the Result of Cryptocurrency Session in the USA?
According to the crypto journalist Eleanor Terrett, the two most important results from the session are as follows:
- There seemed to be an overwhelming consensus that stablecoins are not securities and should not be regulated by the SEC, but possibly at the state level.
- Witnesses and lawmakers agree that sensible legislation from Congress is needed to bring stablecoins into the mainstream.
Davis Polk & Wardwell partner David Portilla, who was among the witnesses, said:
“Federal regulation of stablecoin issuers provides more uniform and consistent rules, while state regulation can foster greater diversity and innovation in regulation and oversight.”
Another witness, Matt Homer of venture capital firm The Department of XYZ, expressed his thoughts:
“Stablecoins will come true whether we want it or not. Offshore issuers are as free to create dollar-backed stablecoins as US issuers. We have to do it in the USA so we can arrange it on our own terms.”
*Not investment advice.