Fierce discussions are taking place regarding the enactment of U.S. stablecoin legislation, according to Sen. Cynthia Lummis (R-Wyo.). The Senator remains hopeful about the possibility of the law being passed for Bitcoin BTC/USD, Ethereum ETH/USD, Dogecoin DOGE/USD and other currencies within the first half of 2024.
What Happened: On Thursday, Sen. Lummis in an interview with CoinDeskTV said that intense dialogues involving Democrats, Republicans, the U.S. Senate, and the House of Representatives are being held daily. Lummis, a staunch supporter of crypto policy, suggested that stablecoin legislation might stand the best chance of success this year, with significant technical assistance feedback coming from the Federal Reserve.
“I’m optimistic that we will see stablecoin legislation this year and possibly even in the first half of this calendar year,” Lummis said.
Per Lummis, legislative progress on crypto matters in Congress has exceeded past years, with Republican-led House committees moving forward bills on market structure and stablecoins. That said, the Senate Banking Committee’s Democrat leadership has shown limited interest in passing a crypto bill this year.
Stablecoins, such as Tether's USDT and Circle Internet Financial's USDC, play a crucial role in the crypto markets, acting as stable transaction mediums in other volatile assets. The level of involvement from the Feds or states in regulating issuers has been a significant bone of contention in previous legislative efforts.
Lummis acknowledged that there is still no consensus on the stablecoin issue, but she is hopeful. She feels that recent advancements in the crypto industry, like the U.S. Securities and Exchange Commission’s approval of spot bitcoin ETFs, have strengthened the case for legislation.
Why It Matters: Sen. Lummis has been a vocal supporter of digital currencies, having introduced eight crypto-related bills and made 184 public statements advocating for cryptocurrency.
Meanwhile, SEC chief Gary Gensler has maintained that many digital currencies fall under existing securities regulations. The International Organization of Securities Commissions (IOSCO) has also made strides in providing a coordinated global regulatory response to crypto-assets. These ongoing discussions and shifts in the political landscape underscore the importance of stablecoin legislation in the ever-evolving world of crypto.
Image Via Pixabay
Engineered by Benzinga Neuro, Edited by Kaustubh Bagalkote
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.