- Crypto coverage professional Ron Hammond has shared updates on the progress of stablecoin laws in Congress.
- Hammond believes bipartisan help is feasible to advance stablecoin laws.
- The coverage professional concluded that solely “time will inform” and that Congress is the “drive to observe.”
In a current Twitter thread, Ron Hammond, Director of Authorities Relations on the Blockchain Affiliation, shared updates on the progress of stablecoin laws in Congress. He highlighted bipartisan collaboration and the significance of current developments concerning stablecoins.
Hammond began on how the journey to stablecoin laws started with policymakers’ considerations about Fb’s Libra program. As consideration turned to order transparency, he highlighted how the shortage of readability and substantial presence within the stablecoin market underscored the necessity for regulatory motion.
The crypto coverage professional famous that in 2021, the Biden administration convened banking regulators to evaluate stablecoin regulation, resulting in the conclusion that congressional laws was wanted. Due to this fact, all through 2022, the Home held hearings, engaged stakeholders, and drafted bipartisan laws.
Moreover, Hammond identified that the collapse of Terra and considerations about algorithmic stablecoins have introduced a renewed sense of urgency to Congress. Nonetheless, as a result of elections, the invoice was not finalized.
Hammond additionally talked about that in early 2023 some regulators took motion independently, which precipitated additional confusion available in the market. Moreover, partisan politics and the position of the state versus federal regulators difficult the drafting course of.
Regardless of this, the coverage professional expressed optimism about the potential of bipartisan collaboration, saying:
“Rep. Waters publicly confused final week that stablecoin laws is required. It stays to be seen whether or not the 2 elements come collectively, however it’s potential.
Likewise, Hammond sees Rep. French Hill decided to advance stablecoin laws this yr. For the crypto professional, most points could be resolved regardless of partisan variations.
Nonetheless, Hammond stated the query stays whether or not the Senate will settle for the invoice and replied, “Doubtlessly, with sufficient Democratic help and strain from Admin Biden, however Senate banks are a committee that hardly ever strikes laws.”
In the end, Hammond acknowledged that solely “time will inform” and one factor is apparent – “the Home is the drive to observe” in pursuing stablecoin laws.
