Senate Banking Committee chair wants to combine stablecoin bill to boost chance of passage

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According to reports, Senator Sherrod Brown, who chairs the US Senate Banking Committee, intends to move forward with a substantial stablecoin legislation by linking it with proposals concerning marijuana companies and recovering banker compensation.

Based on a Bloomberg article from April 16, Senator Brown expressed his willingness to support stablecoin legislation in Congress, under the condition that his concerns are addressed. The senator reportedly planned to include this bill in a legislative package, which also addresses banking with marijuana companies and executive clawbacks for failed financial institutions.

Regulatory concerns over stablecoins have garnered support from both Congress members and industry leaders, but bills addressing these issues have barely progressed in the U.S. House of Representatives and Senate. In February, Maxine Waters, the ranking Democrat on the Financial Services Committee, stated that Democrats and Republicans were near an agreement on a stablecoin bill. The Senate has seen similar efforts spearheaded by a bipartisan group consisting of Cynthia Lummis (Republican) and Kirsten Gillibrand (Democrat).)

Several politicians from various political parties in both houses of Congress have voiced apprehensions about regulating stablecoins effectively through a single law. In July 2023, one such bill, named the Clarity for Payment Stablecoins Act, advanced from committee and was scheduled for a congressional vote. However, since then, progress on this legislation has stalled.

If lawmakers intend to pass digital asset legislation in the year 2024, they must be prepared to confront both supporters and opponents of cryptocurrencies during an election cycle. The outcome of the House, Senate, and Presidential races will significantly impact their ability to do so.

Senator Brown, known for voicing concerns over digital assets in congressional hearings, is expected to run against Republican nominee Bernie Moreno for his Ohio seat. Meanwhile, Representative Patrick McHenry, who heads the House Financial Services Committee, declared in December that he would not be seeking reelection. These leadership roles could significantly impact the progression of crypto-related legislation from 2025 onward.

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2024-04-17 01:07