U.S. lawmakers in Washington, D.C. are again pushing to develop regulations for cryptocurrency stablecoins.
House Financial Services Committee Chairman Patrick McHenry and Democratic Representative Maxine Waters recently met with Senate Majority Leader Chuck Schumer over the drafting of legislation aimed at establishing regulations for stablecoins.
Stablecoins are cryptocurrencies whose price is pegged to another asset, typically the U.S. dollar or gold bullion. They are viewed as being more stable and less volatile than most crypto.
However, it remains to be seen whether any stablecoin regulations would be passed through Congress this year ahead of a presidential election that’s scheduled for November.
McHenry has been a big champion of stablecoin regulations and has said repeatedly that he believes U.S. President Joe Biden will sign regulations into law if presented with them.
Adding a sense of urgency to McHenry’s quest for stablecoin legislation is the fact that he is retiring from Congress later this year and sees the regulations as part of his political legacy.
However, any stablecoin legislation faces big hurdles in passing through Congress and making its way to President Biden’s desk.
The House of representatives is currently paralyzed by infighting, especially among Republican lawmakers. And the Senate Banking Committee has shown no interest in regulating the crypto sector.
Crypto firms are spending heavily on lobbyists in Washington, D.C. as they push back on potential regulations.
