US Lawmaker Reveals The Stablecoin Legislation Might Be Delayed Till Next Year
The US legislators have been trying to create a law regulating stablecoins. However, Warren Davidson, a member of the US House of Representatives, disclosed that they might not pass the stablecoin bill this year.
Stablecoin Bill Might Be Delayed
Stablecoin regulation was one of the significant discussions at the ETA-organized meeting, the Annual Fintech Policy Forum. The program gives lawmakers and leaders room to deliberate how emerging strategies and tech can jointly benefit the public and the entire economy.
The US House of Representatives member Davidson’s speech at the forum on Thursday disclosed that the stablecoin bill might be delayed until 2023. He also assured that the legislation would be passed when the Republicans became the majority lawmakers after the November election.
Davidson, however, did not rule out the possibility of completing the regulatory framework this year, but he is confident it is feasible before the end of the 2023 first quarter.
As the proposal for a stable coin regulatory framework keeps going around within the committee, Davidson remains one of the top lovers of digital assets among the legislators. He believes the committee could reach an agreement faster if they focus more on a narrower definition of stablecoin than Fed’s wider one.
Possibility Of Stablecoin’s General Acceptance
Another speaker at the meeting was the CFPB’s director, Rohit Chopra. Chopra stated that the possibility of stablecoins acceptance universally had attracted the attention of several regulatory bodies.
Meanwhile, he said that an attempt by Facebook to develop a stablecoin initially attracted the regulators to the digital assets. He further stated that stablecoins create exceptional opportunities relating to user adoption, but they also expose the financial system to some threats which require regulators’ proper supervision.
For instance, he mentioned that digital assets’ similarities to securities and the effect they could have on the stable nature of the global financial system if they become generally accepted for payment are some significant threats.
Chopra, however, stated that regardless of the threats the digital assets might expose the entire system to, he believes they have directed more than enough attention to cryptocurrencies.
The director explained that the lawmakers’ excess attention on digital assets has made them neglect other pressing issues concerning financial technology, which equally deserve interest.
As digital assets continue to be widely accepted, policymakers in the US continue deliberating on regulating the cryptosphere. Similarly, Maxine Waters, the chief of the House Financial Services Committee, is still deliberating on the latest stablecoin bill proposal with Patrick McHenry, a top Republican in the committee.
