Regulation
Rep. McHenry says stablecoin regulation needs a broader vehicle
US lawmaker Rep McHenry says stablecoin legislation is a priority with negotiations ongoing for the past 23 months. The lawmaker also spoke about a broader vehicle for a bill in the Senate and recent developments in pro-crypto legislation. Digital asset regulations have taken center stage this month with the passage of industry-wide legislation and a shake-up by several US lawmakers. Events like the former president
Donald Trump Bitcoin’s acceptance of donations and expected bipartisan support have spurred broader market speculation.
New stablecoin vehicle needed, says legislator
Speaking about recent events at the Congress, Representative McHenry indicated that efforts to pass stablecoin legislation in the Senate revolve around a means of promoting the bill. In addition to the vehicle, the law needs an expiration date and an opportunity for it to take effect.
While most commentators are skeptical of the bill’s chances in the Senate, Representative McHenry believes recent successes such as passage of the market structure bill and Democratic vote support indicate bipartisan support. When asked if he thinks the stablecoin bill can stand on its own in the upper house, he responded in the negative.
“Well, I actually think we need a bigger vehicle. What we haven’t seen in the Senate is for them to pass a stand-alone financial services bill in the Senate starting with House Bill 2155 and what we need is for the Senate Majority Leader to prioritize these policies; the market structure, the stablecoins and until that time, we will just create the atmosphere and the pressure as best we can.”
The bill on the market structure is in the Senate
The Financial Innovation and Technology for the 21st Century Act (IN SHAPE 21) was approved in the House by lawmakers of both parties, but its fate in the Senate remains dicey. Representative McHenry said FIT 21 creates a framework for ownership of digital assets by giving regulatory shape to the ecosystem.
Described as a historic bill involving consumer protection and capital flows, its passage with a two-thirds majority is a major statement, McHenry added.
Read also: Altseason moves further away but there is a warning
David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in learning about emerging technologies and has an eye for the latest news. Staying up to date on trends, David has reported in several niches including regulation, partnerships, cryptocurrencies, stocks, NFTs, etc. Away from the financial markets, David cycles and rides horses.