Maxine Waters: Legislators Inching Towards A Sensational Stablecoin Breakthrough

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“We worked something out with the feds, and I think it’s OK,” Waters said of the stablecoin bill.

Lawmakers in the United States are nearing the passage of a long-awaited stablecoin bill, following months of negotiations with House Financial Services Committee Chair Patrick McHenry.

“We’re working on stablecoin; we’re getting very close,” Representative Maxine Waters reportedly told Politico on Feb. 7. “We’re very, very close — very close.”

In recent months, discussions between Democrats and Republicans have centered on passing a stablecoin law. Debates mainly focus on the Federal Reserve’s role in overseeing the stablecoin market and whether it would establish issuance regulations.

“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,” Waters said.

We worked something out with the feds, and I think it’s OK.

Waters has been in discussions with House Financial Services Committee Chair Patrick McHenry on this matter for more than 20 months.

CoinNerd contacted Waters for further comment, but an immediate response was not received.

Circle CEO Jeremy Allaire expressed confidence that crucial stablecoin regulations will be enacted in the U.S. during 2024.

“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,” Allair said on Jan. 15 at the World Economic Forum’s annual meeting in Davos, Switzerland.

Waters’ remarks come after a Feb. 6 hearing led by Janet Yellen, U.S. Treasury Secretary, emphasizing the urgent need for congressional action on cryptocurrency regulation to address risks to investors and the financial system.

The Treasury Secretary stressed the importance of regulation, particularly in safeguarding cryptocurrency wallet users and supervising stablecoin issuers’ activities.

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.

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ABOUT THE AUTHOR

Tabitha Nyamburah
Journalist

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