Rep. Warren Davidson: Stablecoin Account Has ‘Load Opportunity’ To Finalize This Year

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There is a slim chance that the US House of Representatives could pass the bill to regulate stablecoins by the end of the year, although it is more likely to pass in the first quarter of 2023, US Congresswoman Warren Davidson said.

According to a Thursday report from Kitco, Davidson made the comments 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 on a stablecoin account this year.”

The “stablecoin bill” ostensibly refers to draft legislation targeting “endogenously collateralized stablecoins” that came to light this week — and would place a two-year ban on new algorithmic stablecoins like TerraUSD Classic (USTC).

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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 in the first quarter of 2023.

“If we don’t, it’s something I think we can achieve with a Republican majority in the first quarter next year,” he said.

Widely seen as crypto-friendly, Davidson previously introduced the “Keep Your Coins” law that aimed to protect proprietary crypto wallets from US government scrutiny.

A number of accounts aimed at regulating stablecoins have been introduced in the US, such as the one introduced on February 15 this year by US Representative Josh Gottheimer.

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The director of the Consumer Financial Protection Bureau (CFPB), Rohit Chopra, also reportedly spoke at the event and believes stablecoins have the potential for widespread adoption, noting:

A stablecoin, on the rails of a dominant payment system or a mobile operating system, I think that could create ubiquity very quickly.

Chopra added that if stablecoins see this kind of rapid adoption, they could have a serious impact on global financial stability.

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The CFPB director also suggested that Washington may be neglecting other areas of fintech development due to its intense focus on crypto in recent months.

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The forum was attended by financial giants such as Bank of America, Visa and Mastercard and was reportedly intended to spark discussion among executives and policymakers about how they can work together to ensure that evolving technologies help businesses, consumers and the economy. help out.

The current stablecoin bill is being negotiated between House Financial Services Committee chair Maxine Waters and the committee’s top Republican, Rep. Patrick McHenry.