Regulation on stablecoins? This is what Patrick McHenry hopes. Resolutions to regulate and control the ecosystem follow one another and no aspect is neglected. While some regulators are cracking down on cryptocurrencies, the US Treasury and Republicans have this time set their sights on stablecoins.
Regulation on stablecoins? McHenry has hope!
While the SEC continues to tussle with Ripple (XRP), the Republicans are turning their attention to stablecoins this time. The House Financial Services Committee representative spoke at an event on Wednesday. According to his statements, he hopes his stablecoin bill will progress in the coming months.
According to him, they found a ” ugly baby and they hope they can help the latter grow and become attractive. Currently, negotiations are underway with Maxine Waters, the Chair of House Financial Services. Patrick McHenry is the top Republican on the committee and there’s a good chance he’ll become chairman if the Republicans retake the House in November.
For months, he has been working behind the scenes with Waters to strike a deal to regulate stablecoins. It is also collaborating with the US Treasury, which participated in the drafting of this bill. However, this regulation does not seem really favorable to crypto addicts.
Indeed, this regulation aims to create not only a federal framework around stablecoins, but also to temporarily ban payment tokens not backed by fiat currency.
However, this project is far from complete since there are many disagreements in several areas. Among other things, the new rules regarding wallets, the choice of the appropriate federal regulator and the means by which stablecoins are held.
Despite some difficulties, McHenry hopes that “ugly baby”, his stablecoin bill, will evolve favorably. Indeed, he says he remains optimistic despite a period of chaos and operating in a torn Washington. Thus, he firmly believes that the agreement will be signed in the coming months.
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