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Stablecoin regulations are back in the spotlight as lawmakers in the U.S. Congress discuss new legislative proposals. While Democrats push for stricter federal oversight, Republicans advocate for a more flexible regulatory approach. Ongoing negotiations in the Senate and House of Representatives could shape the future of the digital asset market.
Competing Stablecoin Bills in Congress
A new legislative draft introduced by Representative Maxine Waters, a senior Democrat on the House Financial Services Committee, seeks to place stablecoin issuers under federal supervision. This comes shortly after Republican lawmakers proposed a separate bill, accelerating bipartisan discussions to clarify the legal framework for digital assets.
Waters’ proposal grants regulatory authority to the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC) while also involving state regulators in the oversight process. Under this framework, stablecoin issuers would be required to maintain one-to-one reserves. Waters has previously opposed a 2022 Republican bill that allowed state regulators to approve stablecoin issuers without Federal Reserve intervention. Her latest proposal aims to strengthen federal oversight.
On the other hand, Republican lawmakers are promoting a different approach. House Financial Services Committee Chairman French Hill and Representative Bryan Steil introduced a bill proposing a more flexible regulatory structure for non-bank stablecoin issuers. Their proposal shifts oversight from the Federal Reserve to the OCC, making it easier for fintech companies to enter the stablecoin market. It also introduces open licensing rules for non-bank entities to encourage competition in the sector.
Stablecoin Regulation Gains Momentum in the Senate
Regulatory discussions have also gained traction in the Senate. Senator Bill Hagerty introduced a bill outlining risk management and compliance standards for stablecoin issuers. Additionally, a task force comprising members from the Senate Banking Committee, the House Financial Services Committee, the Senate Agriculture Committee, and the House Agriculture Committee has been formed to establish a nationwide regulatory framework for stablecoins and other digital assets.
The growing debate in Washington highlights the increasing demand for legal clarity in the digital asset market. During the Trump administration, lawmakers from both parties presented different regulatory proposals, emphasizing the need for a unified approach. Waters continues to advocate for a bipartisan agreement, with congressional negotiations expected to intensify in the coming months.
As discussions progress, Turkish NY Radio will continue to provide updates on the evolving regulatory landscape in the stablecoin market.
