Republicans on US House Financial Services Committee compromise with Democrats on new Stablecoin Bill.
The House Financial Services Committee, under Republican leadership, has released a new version of its stablecoin bill after receiving feedback from Democratic members. The bill, which is still a draft, would regulate payment stablecoins specifically and would allow state regulators to supervise stablecoin issuers. Federal regulators would have a primary role in issuing capital and liquidity requirements.
The new version now includes other parts, such as the treatment of customer assets by firms providing custodial services and the study on endogenously collateralized stablecoins, after receiving feedback from the committee. The bill defines endogenously collateralized stablecoins as any digital asset that relies solely on the value of another digital asset created or maintained by the same originator to maintain the fixed price.
The draft will be discussed at an upcoming House Financial Services Committee hearing titled “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem,” on June 13.
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A divide on how to regulate stablecoins
The newer version comes after some disagreements between House Democrats and Republicans over the past year regarding how to regulate stablecoins. During a House Financial Services committee last month, both parties seemed divided on the issue. Chair Patrick McHenry, a Republican from North Carolina, and former chair of that committee Rep. Maxine Waters, a Democrat from California, worked together on a bill last year, but two bills had seemingly emerged ahead of that hearing. House Democrats said their Republican counterparts walked away from stablecoin negotiations before the elections and criticized the bill, saying it would weaken customer protections and Federal Reserve oversight, in a tweet last month.