U.S. House Moves Forward with Stablecoin Regulation Bill Amid Bipartisan Support
The U.S. House Financial Services Committee has voted to advance a bill aimed at establishing a regulatory framework for stablecoins, with 32 members in favor and 17 opposed.
A few Democrats sided with Republicans on the measure, marking a rare moment of bipartisan cooperation on crypto regulation.
The proposed legislation seeks to ensure that stablecoins are backed one-to-one by assets like U.S. dollars or short-term government debt, placing them under state or federal oversight. Supporters argue that this approach would promote faster and cheaper transactions while maintaining consumer protection, allowing cryptocurrency businesses to operate within the United States rather than moving overseas.
During the committee session, Chairman French Hill from Arkansas emphasized the need for innovation while also setting clear regulations. He described stablecoins as a way to modernize cross-border payments and reduce dependency on traditional banking systems. The bill aligns closely with a version recently passed by the Senate Banking Committee, with lawmakers aiming to reconcile differences before presenting it for final approval.
One contentious issue remains whether to allow algorithmic stablecoins, which do not hold reserves in a traditional currency like the dollar. Another point of debate is the balance between federal and state permitting, with some members advocating for a more adaptable approach.
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A significant aspect of the discussion involved an amendment proposed by Representative Maxine Waters, which aimed to block former President Trump and his family from creating their own stablecoins. Waters argued that Trump had previously leveraged his political position to develop crypto ventures for personal gain, citing World Liberty Financial as an example. However, the committee ultimately rejected her proposal.
Despite his reservations about Trump’s potential involvement in stablecoin projects, senior Democrat Gregory Meeks of New York supported the legislation, highlighting the need for clear regulations to help the cryptocurrency sector grow responsibly.
Not everyone is on board, though. Traditional banks have expressed concerns that widespread adoption of stablecoins could drain deposits and reduce access to loans. In contrast, a major retail lobby has welcomed the bill, viewing it as an opportunity to create payment systems that could compete with credit card networks.
With stablecoin regulation gaining momentum, lawmakers and industry stakeholders are closely watching how the final version of the bill will shape the future of digital finance in the United States.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
