Long-awaited stablecoin bill has passed first major stress test in House
After hours of wrangling and negotiations, members of the Financial Committee of the United States Congress have finally assented to the payment stablecoin bill, setting a pathway toward giving clarity to an emerging asset class that can change the digital landscape for good.
According to updates from media personality Eleanor Terrett, the bill was passed after about 11 hours of markup, and it sailed through with 34-19 votes, a figure that has placed it as the second most important crypto legislative bill assented to by the ranking members of the House this week.
🚨NEW: After 13 hours of markup, the Clarity for Payments Stablecoin bill has passed the @FinancialCmte with a 34-19 vote, making it the second major piece of #crypto legislation to pass the Committee this week. https://t.co/OlsTUH1O5f— Eleanor Terrett (@EleanorTerrett) July 28, 2023
While there was a report that some Democratic members of the committee attempted to pull out of this bill, in the end, a total of five Democrats assented to the bill, helping to solidify its passage. The stablecoin bill reserves write requirements for stablecoin issuance while preserving the legal authority of state regulators.
The bill was designed in response to Democrats' concerns that stablecoin issuers may choose to evade federal oversight by opting in to be regulated by the states. The bill now recognizes the power of both authorities while giving clarity to issuers and potential users of these stablecoins in America.
General crypto regulation outlook in America
There is still a great deal of uproar in the broader digital currency ecosystem as concerns the regulation of cryptocurrencies. Industry stakeholders, including some pro-crypto lawmakers, have accused the Securities and Exchange Commission (SEC) of instituting regulation by enforcement tactics.
Despite calls for regulatory clarity, SEC Chair Gary Gensler has repeatedly echoed his sentiment that existing securities laws are also applicable to the crypto asset class. This positioning has been faulted in different ways by legal experts in the crypto ecosystem, and with the two significant moves toward crypto regulation made by the Financial Committee this week, clarity may finally be introduced in due time.