There is a small chance the U.S. House of Representatives could pass the bill to regulate stablecoins by year-end, though it’s more likely it will pass in the first quarter of 2023, says U.S. Congressman Warren Davidson.
“There’s an outside chance we find a way to get to consensus on a stablecoin bill this year.”
The “stablecoin bill” seemingly refers to draft legislation aimed at “endogenously collateralized stablecoins” which came to light this week — and would place a two-year ban on new algorithmic stablecoins such as TerraUSD Classic (USTC).
However, Davidson went on to say that while “there’s a chance we get to yes on stablecoins this year,” it’s something that can be achieved by the first quarter of 2023.
“If we don’t, it’s something that I think we can get to with a Republican majority in Q1 next year,” he said.
The Director of the Consumer Financial Protection Bureau (CFPB), Rohit Chopra, also reportedly spoke at the event and believes that stablecoins have the potential for widespread adoption, noting:
A stablecoin, riding the rails of a dominant payments system or a mobile OS, I think that could create ubiquity very quickly.
Chopra added that if stablecoins do see this kind of rapid adoption, they could have a serious impact on global financial stability.
The forum was attended by financial giants such as Bank of America, Visa and Mastercard and was reportedly aimed at fostering discussion between executives and policymakers as to how they can work together to ensure developing technologies help businesses, consumers and the economy.
The current draft bill for stablecoins is being negotiated between House Financial Services Committee Chair Maxine Waters and the committee’s top Republican, Rep. Patrick McHenry.
- ^ According (www.kitco.com)
- ^ refers to draft legislation (cointelegraph.com)
- ^ stablecoins (cointelegraph.com)
- ^ Keep Your Coins” bill (cointelegraph.com)
- ^ number (www.congress.gov)
- ^ introduced on Feb. 15 this year (cointelegraph.com)
- ^ 3AC founders reveal ties to Terra founder, blame overconfidence for collapse (cointelegraph.com)
- ^ intense focus on crypto (cointelegraph.com)
This article was first published on Cointelegraph.com