A final version of stablecoin bill in the US could be ready soon

US House Representative Maxine Waters, a top Democrat on the House Financial Services Committee, has indicated that the final version of the stablecoin bill could be ready soon. In an interview with Bloomberg, Waters expressed optimism about the progress made towards getting the bill in the short run. This is a significant development, considering Waters had previously criticised a version of the same bill.

Waters now emphasises the importance of protecting investors and ensuring that cryptocurrency known as stablecoins have proper backing. This focus on investor protection underscores the need for robust regulation in the rapidly growing market.

Both the Senate and the House of Representatives have seen an acceleration in the movement towards a legislation in the past few weeks. Waters mentioned that the US Federal Reserve, the Treasury Department, and the White House have all had input in shaping the bill, underscoring the extensive collaboration involved.

In addition to progress within the House, a new stablecoin bill has been introduced in the Senate by Senators Cynthia Lummis and Kirsten Gillibrand. The bill proposed a ban on algorithmic stablecoins and requirements for issuers’ tokens to be fully backed by reserve assets. This bipartisan effort demonstrates the growing interest in regulating stablecoin cryptocurrency and ensuring their stability and transparency.

Notably, there is mention of a possible pairing of the stablecoin legislation with a marijuana banking bill. It is suggested that Waters is hopeful of overcoming potential opposition to the marijuana banking bill from Republican leader Mitch McConnell, which could facilitate further progress on both fronts.