The House Financial Services Committee’s decision to delay a vote on stablecoin and crypto trading legislation by a week has caused a stir.
Previously scheduled for July 17, the rescheduling to July 26 marks another chapter in the United States’ complex stance on crypto regulation.
US Stablecoin Bill Sparks Debate
The legislation, designed to “provide for the regulation of payment stablecoins, and for other purposes,” has sparked bipartisan debate.
On one side, Democratic lawmakers continue to display skepticism. They align with industry advocates who contend that current securities laws are robust enough to manage cryptocurrencies.
“It proposes a cumbersome framework with inherent structural issues that will undermine the ability of our federal financial regulators to properly regulate and oversee an industry already rife with instability and fraud,” Rep. David Scott said.
On the other side, Republicans, spearheaded by Reps. French Hill and Patrick McHenry, see the need for new legislation to regulate digital assets. They have turned towards the Commodity Futures Trading Commission (CFTC) as a preferred regulator.
The goal is to marginalize the Securities and Exchange Commission’s (SEC) reach into the crypto industry.
“[We want to put out a stablecoin] bill that deals with both the capital raising piece for digital assets all the way through how a product goes from a securities regime to a commodities regime. At the same time, [we want to] preserve our right around products that [fit] neither neatly into the securities or commodities regime and the ability for people to exchange those,” McHenry said.
Read more: This Congressman Wants to End America’s War on Crypto
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Author: Bary Rahma