Cross-party collaboration in crafting a comprehensive federal stablecoins bill in the United States deserves high marks, but ahead lie ‘tough negotiations’. This was stated by one of its authors, Representative Patrick McHenry, according to Cointelegraph.<\/p>\n
According to the legislator, the fintech dialogue has hit a dead end, and it is necessary to return to solving real problems.<\/p>\n
McHenry called the current situation ‘regressive’, noting that at the federal level there has yet to be a definition of digital assets and stablecoins.<\/p>\n
At this stage, together with the chair of the House Financial Services Committee, Maxine Waters, he has managed to agree on the term ‘stable currencies’. These assets must be pegged 1:1 to a strict collateral framework and must be free of leverage, he explained.<\/p>\n
Among unresolved issues are how stablecoins are stored, wallet regulation, and the designation of a federal regulator. In this, ‘it’s more art than science’, McHenry added.<\/p>\n
\n“It has become ‘a rather ugly child’ that could grow into something more attractive,”<\/em> he explained.<\/p>\n<\/blockquote>\n
McHenry pledged to prioritise regulation of digital assets if appointed chair of the House Financial Services Committee after the midterm elections in November.<\/p>\n
Back in September, Bloomberg learned<\/a> of a two-year moratorium on algorithmic stablecoins in the bill regulating ‘stablecoins’.<\/p>\n
In May, U.S. Treasury Secretary Janet Yellen, amid the TerraUSD incident, urged<\/a> to enact<\/a> regulation of stablecoins by the end of the year.<\/p>\n
Her view on the importance of implementing rules for ‘stablecoins’ was<\/a> supported by Michael Barr, a candidate for the vice chair of the Fed<\/span>.<\/p>\n