A regulation for stablecoins could be approved in the US very soon. If a consensus is reached in the coming days, regulators will soon have a framework for managing stablecoin issues. This altcoin law will pass the US legislature in the next few months.
US legislature to vote altcoin law on stablecoins
According to a Wall Street Journal report, two leading House deputies are ready to agree on the regulation of stablecoins. Republican Patrick McHenry and Democrat Maxine Waters are expected to reach an agreement fairly soon. The report states that the House of Representatives Financial Services Committee may vote on the deal next week if an agreement is reached in the coming days.
If a compromise is reached, Democrat Maxine Waters’ subcommittee will vote as soon as next week. Parliament will consider an altcoin law for stablecoins in the months to follow. More importantly, Treasury Secretary Janet Yellen has previously supported crypto regulation. Yellen suggested last month that Congress limit crypto types for retirement plans.
The path to regulation is currently unclear
Meanwhile, efforts by politicians to get the deal through the Senate are not going well. As of now, it is unclear how they will respond to stablecoin regulation requests from existing regulatory bodies. For example, Democrat Senator Sherrod Brown is in favor of using existing laws to address concerns about stablecoins. Senator Brown, chairman of the US banking committee, had this to say about Bitcoin last year:
Bitcoin’s value fluctuates as tweets dwindle. It’s down 30% since yesterday. This kind of market volatility is not what our economy needs. If risky crypto companies want to be banks, they shouldn’t be playing by a different set of rules.
Bitcoin’s value fluctuates at the drop of a tweet. Yesterday, it plummeted 30%.
This kind of market volatility is not what our economy needs. If risky crypto companies want to become banks, they shouldn’t get to play by a different set of rules.https://t.co/qRptyQYiBn
— Sherrod Brown (@SenSherrodBrown) May 21, 2021
According to the report, Senator Brown did not participate in the discussions about the new deal between Waters and McHenry. Meanwhile, the new bill is expected to guide the Fed’s regulation of stablecoin issuers.
Additionally, the New York State Department of Financial Services (DFS) released new regulatory guidelines for the regulation of stablecoins last month. Specifically, the recommendation establishes core standards for US dollar-backed stablecoins under its jurisdiction, as it pointed out at the time.
SEC chief highlights agency’s work on crypto regulation
SEC Chairman Gary Gensler revealed today what he can expect from his agency when it comes to US crypto regulation. “What can we expect from the SEC on the crypto regulatory front in the coming months?” Gensler replied:
More broadly, currently the public will benefit from investor protection around these various service providers…exchanges, lending platforms and broker-dealers. So at the SEC, we work in each of these three areas (exchanges, lending, and broker-dealers) and talk to industry participants about how to enter or change some of that compliance.
As you follow on Kriptokoin.com, the head of the SEC made critical statements on the regulation of cryptocurrencies today.
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