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U.S. Policy Makers Are on a Cusp of Reaching a Compromise on the Stablecoin Bill

Maxine Waters says the U.S. lawmakers may soon settle the stablecoin deal  

United States legislators are about to achieve a breakthrough in cryptocurrency regulation, signaling a promising development for the stablecoin sector. Representative Maxine Waters, in a conversation with Politico, expressed optimism about the progress, Waters revealed: 

"We’re working on stablecoin; we’re getting very close,” "

We’re very, very close — very close." 

This statement underscores the bipartisan effort to finalize a stablecoin bill, a subject of intense negotiation and discussion among political circles.

Bipartisan efforts and central oversight: the Core of the stablecoin bill

The dialogue between Democrats and Republicans has been pivotal in shaping the upcoming stablecoin legislation, with both parties keen on establishing a regulatory framework that includes Federal Reserve oversight.

Waters emphasized, highlighting the critical role of federal oversight in the growing stablecoin market. 

 "That's what's important to me: Our central bank should have the power of oversight, and should have the ability to be at the head of this," 

This collaborative spirit is further evidenced by over 20 months of negotiations between Waters and House Financial Services Committee Chair Patrick McHenry, aiming to bridge the partisan divide and foster regulatory clarity.

Align on the need for regulation

The push for stablecoin regulation is not just a governmental endeavor; industry leaders also recognize its importance. Circle CEO Jeremy Allaire, speaking at the World Economic Forum’s annual meeting in Davos, Switzerland, voiced his support. 

Allaire remarked:

“Digital dollars are happening around the world, other governments are regulating dollar digital currencies before the United States. So I think there is a very strong desire to act and assert U.S. leadership and get the right consumer protections involved,” 

This shared urgency is echoed by Janet Yellen, U.S. Secretary of the Treasury, who stressed the need for immediate congressional action to safeguard investors and ensure financial system stability.

“We’ve identified some gaps where, for consumer investor protection and to address financial stability risk, it would be useful for Congress to take action to fill those gaps.”