The threat of a federal government shutdown hasn’t sidelined efforts to enact stablecoin legislation. House Rep. Patrick McHenry said rules remain a priority, though tensions around state vs. federal oversight persist.
McHenry affirms he will keep pushing for a stablecoin framework, despite funding lapses that could halt parts of the government this weekend. The legislation passed his Financial Services Committee in July.
While bipartisan agreement exists around much of the bill, state-level oversight is a remaining sticking point. Some argue states should regulate stablecoins rather than the federal government.
McHenry highlighted stablecoins’ potential to spread the US dollar globally. He argues that dollar-pegged stablecoins backed 1:1 by reserves are a “simple product” needing clear rules.
The legislation would provide federal licensing for stablecoin issuers. However, an alternative state-level path has faced opposition. McHenry acknowledged broader regulatory debates beyond just crypto.
With midterm elections looming, the legislative timeline is tight. McHenry aims to pass an agreement through both chambers and get Biden’s signature by early 2023.
Some states aren’t waiting on federal action. 17 stablecoin bills are pending in state legislatures currently. The urgency around crypto oversight continues despite the DC gridlock.
While the government shutdown threat adds complications, stablecoin oversight remains a priority for lawmakers like McHenry. But bridging partisan divides will be key for any rules to become law.
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