In a move that adds momentum to ongoing efforts to regulate stablecoins, House Financial Services Committee ranking member, Rep. Maxine Waters, has introduced a new proposal for federal oversight of stablecoin issuers. The draft, which outlines comprehensive regulations for stablecoin operations, places control in the hands of key financial institutions including the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC), with input from state regulators.
Waters’ draft, obtained by Punchbowl News, highlights her commitment to a federally coordinated approach to stablecoin regulation, emphasizing the need for issuers to maintain a reserve ratio of one-to-one to ensure the stability of these digital assets. This proposal comes in stark contrast to a separate Republican-backed draft introduced last week, which advocates for more state-level oversight and seeks to place the OCC in charge of regulating nonbank stablecoin issuers. Waters had previously opposed such state-centric proposals, particularly a Republican bill from 2022, which would have granted state regulators approval authority for stablecoin issuers, bypassing the Federal Reserve.
Meanwhile, the GOP is continuing its push for its own stablecoin regulatory framework. Last week, Representatives French Hill and Bryan Steil, both members of the House Financial Services Committee, introduced a draft bill that would give the OCC the responsibility to oversee federally-approved nonbank stablecoin issuers, removing the Federal Reserve from direct oversight. This bill aligns with broader Republican efforts to establish clearer rules for digital assets, particularly in the rapidly expanding stablecoin market.
In the Senate, stablecoin regulation is also gaining traction. Senator Bill Hagerty has introduced the “Guiding and Establishing National Innovation for U.S. Stablecoins” Act, which seeks to establish national standards for stablecoin oversight. Alongside this bill, a working group composed of members from the Senate Banking Committee, House Financial Services Committee, and Senate and House Agriculture Committees is working to craft a comprehensive framework for regulating stablecoins and other digital assets.
These legislative efforts come at a time when concerns about market competition in the stablecoin space, notably from Tether CEO Paolo Ardoino, are intensifying. Despite previous setbacks in passing stablecoin legislation, the current momentum suggests that digital asset regulation, particularly in the stablecoin market, will remain a central topic in Washington.
Both Republican and Democratic lawmakers are pushing forward with their respective proposals, signaling a continued bipartisan effort to shape the future of stablecoin regulation. As the debate evolves, discussions in Congress are expected to intensify in the coming months as lawmakers seek to strike a balance between federal oversight and state-level involvement in the emerging digital currency market.
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