Rep. Maxine Waters, a leading Democrat on the House Financial Services Committee, is pushing for a big agreement on stablecoin legislation before the year ends. She wants to settle two years of discussions in Washington about how to regulate stablecoins.
Waters is working alongside Rep. Patrick McHenry, the Republican chair of the committee. Since 2022, they’ve been focused on creating clear rules for issuing and regulating stablecoins, according to The Block.
Last year, the bill moved out of the Republican-led committee, but it hasn’t gained much support beyond that. Waters has called the bill “deeply problematic” because it allows state regulators to approve stablecoin issuances without the Federal Reserve’s input.
During a recent committee hearing, Waters expressed hope for a compromise that balances consumer protection with federal oversight. She said, “Mr. Chairman, before the end of this year, I want us to strike a grand bargain on stablecoins and other long overdue bills.” Both sides have made significant concessions during their talks.
Waters stressed that the legislation must ensure stablecoins are backed by secure reserves, like short-term Treasury bills, to maintain their stability. “The Federal Reserve needs to have a dominant role,” she added, highlighting the importance of federal involvement similar to what other countries do.
She also challenged McHenry, saying, “I’ve made a public statement to you about bipartisanship — let’s see what you do with it.”
McHenry, who has been leading efforts on digital asset regulation, supported the stablecoin legislation. He emphasized the need for more clarity on digital assets. He hopes his separate bill, FIT21, could gain momentum by the end of the year, especially with his retirement coming up in January.
As the year winds down, there’s increasing pressure to finalize a regulatory framework for stablecoins. This urgency grows as the committee discusses important digital asset issues. All five commissioners of the U.S. Securities and Exchange Commission (SEC), including Chair Gary Gensler, recently testified at a hearing.
Lawmakers questioned the commissioners about the SEC’s approach to digital assets, rulemaking, and oversight.
These discussions about stablecoin regulation will be central topics at the upcoming Benzinga Future of Digital Assets event on November 19.