Lawmakers in the U.S. House of Representatives are pushing to introduce a stablecoin bill draft this week before the House breaks for August recess, according to four unnamed sources “familiar with the plan” cited by The Block.
See related article: Hold onto your crypto bags, the regulators are coming
Fast facts
- The proposal on stablecoin regulations had previously been delayed due to unresolved negotiations, The Block reported.
- If lawmakers’ pre-recess push is unsuccessful, it will join a bipartisan cryptocurrency bill to face delays in the U.S. Senate this year.
- The U.S. Senate is unlikely to vote on the cryptocurrency bill this year, as it may be difficult for lawmakers to digest given the large scope of the bill, Republican Senator Cynthia Lummis, who drafted the bipartisan proposal, said last Tuesday.
- “I think there is an issue about retiree investment in something like stablecoins and that has affected retail investors,” Ben Emons, a managing director of macro strategy, Medley Global Advisors, told Forkast. “There’s actually, for that reason, a need to have better regulation of crypto or stablecoins. In this case, it fortunately turned out not to be a financial systemic issue.”
- Emons said that with the August recess round the corner, the lawmakers “want to push it through,” especially because the passage for legislation to advance between August, November and December is narrow.
See related article: Financial Stability Board calls for high regulatory standards for stablecoins