(Kitco News) Following the widely accepted Lummis-Gillibrand cryptocurrency law, US lawmakers are ready to roll up their sleeves to pass a clear federal stablecoin law following the collapse of the TerraUSD stablecoins.
This week, US lawmakers took to Austin, Texas to attend a popular Consensus 2022 cryptocurrency conference that was attended by over 400 speakers and 15,000 attendees.
And one of the most popular panels at the multi-day event was titled “Washington’s Crypto Awakening: The Lawmaker Town Hall” – attended by Senator Pat Toomey (R., Pa.), US Senator Cynthia Lummis (R-WY ), US Senator Kirsten Gillibrand (D-NY) and Representative Patrick McHenry (RNC).
Most attendees embraced the potential regulatory clarity coming from Washington, with Lummis and Gillibrand explaining their bill as a very comprehensive piece of legislation that takes the existing regularity framework and places the cryptocurrency world above it.
“The CFTC will settle digital assets that are commodities for the spot and futures market,” Lummis said on Friday. “The fiscal components are addressed, the definitions are addressed. We are attempting to bring to the Senate chamber its first opportunity to examine this aspect broadly, including stablecoins and testing CBDC notions with respect to some studies.”
To find out more about the Lummis-Gillibrand bill, click here.
.@SenLummis at the last #crypto bill: It takes the existing regularity framework and we put the cryptocurrency world on top of that. For #CFTCthey will regulate digital assets that are commodities for the spot and futures market. pic.twitter.com/IJ24HilU2b
– Kitco NEWS (@KitcoNewsNOW) June 10, 2022
Another big headline to come out of the roundtable was the incredible speed with which the United States got to see federal regulation on stablecoins passed.
“I’m going to go out on a limb and say we’ll have stablecoins done this year,” said Toomey.
He added that lawmakers appear to have broad consensus and the urgency to implement it. Toomey has his own account on the stablecoins he proposed in April.
“We will need to have regulatory certainty about it,” he said. “I know the [Biden] the administration is interested in doing something in this space “.
Other panel lawmakers agreed with the urgency described by Toomey, especially after the dramatic collapse of the TerraUSD.
“I think we could do a stablecoin bill between now and the end of the year because it’s urgent,” Gillibrand said. “We just had a financial crisis, we just had a meltdown, we just had a hiatus because there is no regulation. And it’s not fair to the whole industry.”
However, he conceded that approving anything so quickly would be very difficult in Washington due to the number of committees that need to be involved.
McHenry pointed out that there is no federal definition or federal law defining stablecoins. “It’s important to do it right. We need to protect innovation in that space. We need to have a clear treatment of digital assets,” she said.
McHenry also revealed that the House is “close to a significant movement” in a large bipartisan way on stablecoins. “This summer, you will see a bipartisan House Financial Services Commission bill on asset-backed stablecoins,” she said.
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