Sherrod Brown, the chair of the United States Senate Banking Committee, has unveiled his plans to promote a significant stablecoin bill by combining it with legislation concerning marijuana businesses and reclaiming compensation for bankers.
As per an article from Bloomberg on April 16, Senator Brown expressed his willingness to pass stablecoin legislation in Congress, provided that his concerns were addressed. His proposed strategy involves bundling the stablecoin bill with legislation that permits banks to engage in business with companies involved in the sale of marijuana, as well as implementing clawback measures for executives of failed financial institutions.
Despite support from many members of Congress and industry leaders, lawmakers in both the U.S. House of Representatives and the Senate have struggled to make progress on bills addressing regulatory concerns surrounding stablecoins. In February, Maxine Waters, the Ranking Member of the House Financial Services Committee, stated that Democrats and Republicans were on the verge of reaching a compromise on a stablecoin bill. In the Senate, a bipartisan group led by Republican Cynthia Lummis and Democrat Kirsten Gillibrand has been at the forefront of similar legislative efforts.
Numerous members from both political parties in both chambers of Congress have expressed concerns about establishing a comprehensive framework for stablecoins in a single bill. In July 2023, the Clarity for Payment Stablecoins Act, one of the proposed bills in the House, successfully cleared the committee stage and was scheduled for a full floor vote. However, little progress has been made since then.
In addition to grappling with regulatory legislation, lawmakers will also have to navigate the opinions of their pro- and anti-crypto constituents in an election year if they decide to move forward with digital asset-related legislation in 2024. The control of the House, Senate, and the Presidency will be up for grabs.
Senator Brown, who has frequently highlighted the risks associated with digital assets in committee hearings, is expected to face off against Republican nominee Bernie Moreno for his Ohio seat. Furthermore, Representative Patrick McHenry, the chair of the House Financial Services Committee, announced in December that he does not plan to seek reelection. Both of these leadership positions could play a pivotal role in advancing crypto bills starting in 2025.
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