House Republicans Unveil New Draft Bill for Stablecoin Regulation, Seeking Bipartisan Input
U.S. lawmakers are taking another shot at regulating stablecoins, with House Financial Services Committee Republican Chair French Hill, alongside Rep. Bryan Steil, releasing a new draft bill on Thursday. This latest effort builds upon years of work in the House and seeks feedback from consumers, issuers, and stakeholders, signaling a renewed push to establish clear rules for this rapidly growing segment of the cryptocurrency market.
Key Provisions: Licensing, Reserves, and Federal Oversight
The discussion draft bill focuses on creating a regulatory framework for "payment stablecoins," digital assets typically pegged to the value of a fiat currency like the U.S. dollar. Key provisions include requiring stablecoin issuers to obtain a license from the Hong Kong Monetary Authority (HKMA), and maintaining a robust reserve mechanism backed by high-quality, highly liquid assets.
A Shift in Approach: OCC Takes the Lead
This new draft differs slightly from previous attempts, notably in its approach to federal oversight. Instead of granting the Federal Reserve a direct pathway for approving "payment stablecoin issuers," the new bill gives the Office of the Comptroller of the Currency (OCC) the authority to "approve and supervise federally qualified nonbank payment stablecoin issuers."
Years in the Making: Previous Efforts and Sticking Points
The bill's release comes after years of effort by lawmakers, primarily in the House, to pass stablecoin legislation. Previous attempts, spearheaded by former House Financial Services Committee Chair Patrick McHenry and top Democrat Maxine Waters, stalled due to disagreements, including a provision allowing state regulators to approve stablecoin issuances without Federal Reserve input.
Seeking Input: A Call for Feedback and Collaboration
"By implementing a clear regulatory structure for payment stablecoins, we can support continued innovation, bolster the U.S. dollar's position as the world's reserve currency, and protect consumers and investors," Steil said in a statement. The draft legislation will be discussed in a hearing next week in the House Financial Services Committee, providing an opportunity for further debate and refinement.
A Senate Counterpart and a Bipartisan Working Group
Meanwhile, in the Senate, Senator Bill Hagerty introduced a separate stablecoin regulation bill earlier in the week, called the "Guiding and Establishing National Innovation for US Stablecoins". A bipartisan working group, including members from various House and Senate committees, has also been formed to develop rules for crypto and stablecoins. Senate Banking Committee Chair Tim Scott emphasized the need to balance innovation with consumer protection and financial inclusion.