There is a small chance that the US House of Representatives will pass a bill to regulate stablecoins by 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 a Kitco report released Thursday, Davidson made the announcement at the Annual FinTech Policy Forum on Sept. 22, where he suggested:
“There is a chance we can find a way to reach consensus on a stablecoin bill this year.”
The “stablecoin bill” appears to refer to a bill aimed at “endogenously backed stablecoins” that came to light this week that would see a two-year ban on new algorithmic stablecoins like TerraUSD Classic (USTC).
However, Davidson went on to say that while “there is a chance that we will get an affirmative answer on stablecoins this year”, this could be achieved by the first quarter of 2023.
“If we don’t do that, then I think we can get it with a Republican majority in the first quarter of next year,” he said.
Davidson is widely regarded as crypto-friendly and previously introduced the “Keep Your Coins” bill aimed at protecting self-sustaining crypto wallets from US government control.
A number of bills have been introduced in the US to regulate stablecoins, such as the one introduced on February 15 this year by US Rep. Josh Gottheimer.
Rohit Chopra, director of the Consumer Financial Protection Bureau (CFPB), reportedly also spoke at the event, who believes that stablecoins have the potential for widespread adoption, noting:
A stablecoin running on the rails of a dominant payment system or mobile OS can, I think, become ubiquitous very quickly.
Chopra added that if stablecoins do gain such rapid adoption, they could have a major impact on global financial stability.
On the subject: 3AC Founders Reveal Ties to Terra Founder and Blame Overconfidence for Crash
The CFPB director also suggested that Washington may be neglecting other areas of fintech development due to its close focus on cryptocurrencies in recent months.
The forum was attended by financial giants such as Bank of America, Visa and Mastercard and was reportedly aimed at encouraging discussion among executives and policy makers about how they can work together to ensure that emerging technologies help businesses, consumers and the economy. .
The current stablecoin bill is being debated between House Financial Services Committee Chair Maxine Waters and the committee’s top Republican, Rep. Patrick McHenry.