A markup session on the Stablecoin Bill in the U.S. House Financial Services Committee ended with a vote in favor of the Bill, despite significant objections from Democrats. The Bill is still subject to a full House vote with ongoing bipartisan negotiations, as well as subsequent consideration by the Senate and the President.
It was a chaotic process with considerable conflict. Republican Committee Chair Patrick McHenry accused the White House of scuppering a bipartisan deal. Ranking Member Representative Waters was very frustrated over confusion about which version of the Stablecoin Bill was under discussion and suggested postponing the markup but was outvoted.
Despite her anger, Waters made the dividing lines clear. Top of the list are two related issued regarding the extent of powers handed to States and the limited involvement of the Federal Reserve. “Republican McHenry’s Bill promotes a race to the bottom by creating 58 different licenses,” she said.
This same issue was raised in letters last week from the American Banking Association (ABA) and the Credit Union National Association (CUNA). Both called for at least the same level of federal supervision over stablecoins as state-chartered banks and credit unions.
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