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Rep. Maxine Waters, the top Democrat on the Financial Services Committee, expressed optimism that a deal could be reached. stablecoin regulation agreement in the near future, following extensive discussions with key stakeholders in Congress and various government agencies.
In an interview on Bloomberg Television's “Balance of Power,” Waters said she and committee Chairman Patrick McHenry, a North Carolina Republican, were close to finalizing a stable bill after 22 months of negotiations . She highlighted the importance of protecting investors and ensuring that stablecoin issuers have sufficient assets to back their digital tokens.
Waters highlighted the collaborative effort behind the legislation, mentioning conversations with Senate Majority Leader Chuck Schumer, Senate Banking Chairman Sherrod Brown and input from the Federal Reserve, Treasury Department and House White.
“It’s about ensuring that investors and citizens are protected. We need to make sure they have these assets to back up stablecoins,” Rep. Waters asserted.
Potential federal regulation of stablecoins could lend legitimacy to the asset class, potentially leading to broader adoption and increased investor confidence.
In addition to stablecoin regulation, Waters has expressed support for a marijuana banking bill that recently passed the Senate Banking Committee. Despite the legalization of marijuana in many parts of the country, federal restrictions have largely prevented the cannabis industry from accessing traditional banking services, forcing businesses to operate primarily with cash. This also rules out the possibility that regulation of stablecoins could help solve the problems faced by this sector, although Representative Waters did not specify or delineate the relationship between the two and why they are grouped together.
Waters stressed the importance of passing marijuana banking legislation, saying “now is the time” to implement such developments. She says she hopes the Senate can overcome potential opposition from Republican leader Mitch McConnell.
Senate Banking Chairman Sherrod Brown has signaled willingness to consider a package combining stablecoin legislation with the marijuana banking bill and a bill to claw back executive compensation from defaulting lenders. Lawmakers are considering attaching that package to the Federal Aviation Administration reauthorization, which is expected next month and considered must-pass legislation.
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