US House Financial Services Committee Convenes Hearing on Stablecoins, Debating Competing Regulatory Approaches
US officials are currently discussing regulatory proposals regarding stablecoins, aiming to bring clarity to this rapidly evolving technology and asset class. The US Financial Services Committee recently conducted a hearing that focused on two competing proposals, one from Republican French Hill and another from Democrat Maxine Waters, the Ranking Member. The key distinction between the two bills lies in the jurisdiction over stablecoin regulations, with the Republican version favoring state regulators and the Democrat bill advocating for federal regulators to have exclusive authority.
Both bills outline rules related to liquidity, transparency, and reserves for stablecoin issuers. Hill emphasized the importance of reaching an agreement to foster the safe growth of the industry within the United States and prevent it from slipping beyond American oversight. He argued that opposing legislation would jeopardize consumer protection and hinder appropriate US regulatory oversight, potentially pushing stablecoins into offshore and opaque projects.
Clever Robot News Desk 22nd May 2023