Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, is making a strong push for a comprehensive agreement on stablecoin legislation before the year’s end. Her goal is to resolve the two-year-long debate in Washington over the regulatory framework for stablecoins.
Waters, along with Rep. Patrick McHenry, the Republican chair of the committee, has been working since 2022 to establish clear guidelines for stablecoin issuance and regulation. While the bill initially advanced out of the Republican-led committee last year, it has faced obstacles in gaining wider support.
Waters previously expressed concerns about the bill, citing a provision that allows state regulators to approve stablecoin issuances without Federal Reserve involvement. During a committee hearing on Tuesday, Waters expressed optimism about reaching a compromise that balances consumer protection with robust federal oversight.
“Mr. Chairman, before the end of this year, I want us to strike a grand bargain on stablecoins and other long overdue bills,” Waters stated, highlighting the significant concessions made by both sides during negotiations. She emphasized that the legislation must ensure that stablecoins are backed by secure reserves, like short-term Treasury bills, to maintain their stability.
“The Federal Reserve needs to have a dominant role,” Waters stressed, emphasizing the importance of federal involvement in line with other countries’ approaches.
Waters extended a challenge to her Republican colleague, saying, “I’ve made a public statement to you about bipartisanship — let’s see what you do with it.”
McHenry, who has been leading efforts on digital asset regulation, echoed his support for stablecoin legislation and highlighted the need for greater clarity on digital assets overall. He also expressed hope that his separate crypto market structure bill, FIT21, could gain momentum before the end of the year, particularly as his retirement in January approaches.
With the clock ticking down for legislative action in Congress this year, pressure is mounting to finalize a stablecoin regulatory framework. The stakes are particularly high as the committee continues to discuss critical digital asset issues. All five commissioners of the U.S. Securities and Exchange Commission (SEC), including Chair Gary Gensler, testified at Tuesday’s hearing. Lawmakers questioned the commissioners about the SEC’s approach to digital assets, rulemaking, and oversight.
These discussions, along with the future of stablecoin regulation, will be central topics at the upcoming Benzinga Future of Digital Assets event on November 19th.
