The chair of the Senate Banking Committee aims to increase the likelihood of passing a stablecoin bill by proposing its combination with other legislation.
Since July 2023, a bill in the House of Representatives designed to establish regulations for stablecoins has remained stagnant without progress.
Plans indicate that Sherrod Brown, chair of the United States Senate Banking Committee, intends to push forward a substantial stablecoin bill. This strategy involves merging it with legislation concerning marijuana businesses and efforts to reclaim compensation for bankers.
According to a report from Bloomberg on April 16, Senator Brown expressed his willingness to support stablecoin legislation in Congress as part of his agenda, on the condition that his concerns are taken into account.
Reportedly, the U.S. lawmaker’s strategies involve bundling the stablecoin bill with legislation allowing banks to engage with marijuana-related businesses and implementing clawback measures for executives of bankrupt financial institutions.
Despite backing from numerous members of Congress and industry leaders, bills aimed at tackling regulatory issues surrounding stablecoins have seen little progress in both the U.S. House of Representatives and Senate.
In February, Maxine Waters, Ranking Member of the House Financial Services Committee, stated that Democrats and Republicans were on the verge of reaching a compromise regarding a stablecoin bill.
Meanwhile, in the Senate, bipartisan legislation efforts have been led by Republican Cynthia Lummis and Democrat Kirsten Gillibrand.
Numerous lawmakers from both political factions in both houses of Congress have voiced concerns regarding the establishment of a suitable framework for stablecoins within a comprehensive bill.
In July 2023, the Clarity for Payment Stablecoins Act, one of the bills proposed in the House, had progressed beyond committee and was scheduled for a complete floor vote. However, there has been minimal, if any, progress on the legislation since then.
If lawmakers decide to proceed with legislation concerning digital assets in 2024, they will face the challenge of balancing the interests of both pro and anti-crypto constituents during an election year. With control of the House, Senate, and the Presidency at stake, the political landscape adds complexity to the decision-making process.
Senator Brown, a frequent speaker on the dangers of digital assets during committee hearings, is poised to contend for his Ohio seat against Republican nominee Bernie Moreno.
In December, Representative Patrick McHenry, chair of the House Financial Services Committee, stated his decision not to run for reelection. These leadership roles may play a pivotal role in driving forward crypto-related legislation from 2025 onwards.
