Stablecoin Bill Faces Challenges as Crypto Legislation Stalls
Crypto legislation, particularly a stablecoin bill, is unlikely to gain traction before the end of 2024, as stated by investment bank TD Cowen in a recent note. U.S. lawmakers are currently in recess until after the election, leaving only a brief lame-duck session to address pending bills.
Jaret Seiberg from TD Cowen's Washington Research Group expressed pessimism about significant legislative action during the period between the election and the swearing-in of the new Congress in early January. The timeframe for passing crypto-related bills is further constrained as lawmakers prioritize funding for the government and the National Defense Authorization Act (NDAA).
Seiberg noted that stablecoin legislation has the best chance of passing, particularly under a best-case scenario. Since 2022, House Financial Services Committee Chair Patrick McHenry, R-N.C., and top Democrat Maxine Waters, D-Calif., have collaborated on a bill aimed at establishing a regulatory framework for stablecoins. Despite moving past the Republican-led committee last year, it has struggled to gain momentum.
Waters recently indicated that a deal on stablecoins could be imminent, expressing a desire for a "grand bargain" during a congressional hearing. Seiberg highlighted that if both parties' leadership is committed to achieving a deal, this package is ready for action.
In a related development, millions are being invested in the Ohio Senate race to influence crypto legislation. Super PAC Fairshake has committed $12 million to unseat Senator Sherrod Brown, D-Ohio, who has been critical of the crypto industry. Current polls show a tight race, with Brown slightly ahead of crypto-advocate Bernie Moreno.
Seiberg raised concerns about whether Democrats would want to reward the crypto industry for its financial efforts in the election, suggesting that they might delay stablecoin legislation until 2026 in a worst-case scenario.
Disclaimer: The Block is an independent media outlet providing news and analysis. This article is for informational purposes only and does not constitute legal or financial advice.
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