The US President’s Financial Markets Working Group discussed issues that need to be addressed regarding cryptocurrency legislation at a meeting on Thursday. White House official says US government stablecoin bill could pass by year’s end
“Stablecoin legislation is likely to become law by the end of this year”
A US administration official said that the US federal government is working on stablecoin legislation. The official also noted that the relevant bill is likely to pass through Congress and become law by the end of the year.
The President’s Financial Markets Working Group consists of the heads of various financial regulators. The Working Group has an intergovernmental character. The Working Group met on Thursday to discuss recent stablecoin activities and future legislation. That legislation would be introduced by the House Financial Services Committee, he said.
Organizers and other attendees will meet at Thursday’s meeting, the official said. He also noted that the meeting is scheduled to review recent events in the stablecoin industry, including algorithmic stablecoins. In addition, he noted that this year it is necessary to involve participants in the efforts to move the law.
This legislative package, which has not yet been finalized or introduced, will define stablecoins for the purposes of US regulations. It will also touch on how they are used. This would also protect the existing regulatory authority over the industry, he said.
How stablecoins are issued will be another detail discussed by the meeting attendees. The official said Thursday’s meeting was constructive. The working group has studied stablecoins for two years. To that extent, he published a comprehensive report in November 2021 that suggested a possible regulatory framework for this aspect of the broader cryptocurrency industry.
Bipartisan cryptocurrency bill
The official also said that regulators needed bipartisan support. Senate Banking Committee Ranking Member Pat Toomey (R-Pa.) suggested that a stablecoin law could be passed by the end of 2022, though he did not address legislation in the Senate.
As we reported on Kriptokoin.com, Pat Toomey spoke at CoinDesk’s Consensus 2022 conference earlier this month. At this conference, he also introduced his landmark stablecoin bill. He also said that he knows that US President Joe Biden’s administration is interested in passing stablecoin rules.
“I’m going to go out on a limb and say we’re going to finish stablecoins this year,” Toomey said at the time. On the other hand, any proposed bill will need to be passed by both the House and Senate.
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