There is little chance that the US House of Representatives could pass a bill to regulate stablecoins before the end of the year, although it is more likely to pass in the first quarter of 2023, says US Congressman Warren Davidson.
According to per Thursday’s report from Kitco, Davidson made remarks at the annual fintech policy forum on Sept. 22 where he suggested:
“There is an outside chance that we will find a way to reach consensus this year on a stable bill.”
Seemingly “stablecoin bill”. refers to the bill aimed at “endogenously collateralized stablecoins” that came to light this week – and would introduce a two-year ban on new algorithms stablecoins such as TerraUSD Classic (USTC).
However, Davidson went on to say that while “there’s a chance we’ll get yes to stablecoins this year,” it’s something that could be achieved by the first quarter of 2023.
“If we don’t do that, that’s something I think we can accomplish with a Republican majority in the first quarter of next year,” he said.
Davidson is widely seen as crypto-friendly and has previously introduced the so-calledKeep your coins”. which aimed to protect its own crypto-wallets from US government control.
The Director of the Consumer Protection Bureau (CFPB), Rohit Chopra, also reportedly spoke at the event and believes that stablecoins have the potential for widespread adoption, noting:
A stablecoin that rides the rails of a dominant payment system or mobile OS, I think could create ubiquity very quickly.
Chopra added that if stablecoins actually saw this kind of rapid adoption, they could have a serious impact on global financial stability.
The CFPB director also suggested that Washington may be neglecting other areas of fintech development because of this intensive focus on cryptocurrencies in the last months.
The forum was attended by financial giants such as Bank of America, Visa and Mastercard and was said to be aimed at fostering discussion among executives and policymakers about how they can work together to ensure that technology developments help businesses, consumers and the economy.
The current stablecoin bill is being debated by House Financial Services Committee Chair Maxine Waters and the committee’s top Republican, Rep. Patrick McHenry.