Apparently, there is a small chance that the United States House of Representatives could pass the bill to regulate stablecoins by the end of the year, although it is more likely to be approved during the first quarter of 2023, according to US Congressman Warren Davidson.
Thursday, as reported by KitcoDavidson reportedly shared these observations at the Annual Fintech Policy Forum:
“There is a chance to reach consensus on a stablecoin law this year.”
The “stablecoin bill” appears to refer to the draft “endogenously collateralized stablecoins” that emerged this week, which would ban the issuance of new algorithmic stablecoins such as TerraUSD Classic (USTC) for two years.
However, despite Davidson saying “there is a chance it will be approved this year,” it will likely come finalized by the first quarter of 2023.
“If we don’t make it, I think it’s an achievable result with a Republican majority within the first quarter of next year”he reported.
Davidson is seen in favor of cryptocurrencies and has presented the law in the past Keep Your Coinswhich aimed to protect self-guarded crypto wallets from US government scrutiny.
Director of the Consumer Financial Protection Bureau (CFPB), Rohit Chopra, also spoke at the event and believes that stablecoins have the potential for large-scale adoption:
“A stablecoin, integrated into a dominant payment system or mobile operating system, I think could create ubiquity very quickly.”
Chopra added that if stablecoins see this kind of rapid adoption, they could have a serious impact on global financial stability.
Related: 3AC Founders Reveal Do Know Ties And Blame Their Overconfidence
The CFPB director also suggested that Washington may overlook other areas of fintech development because of its own high attention on cryptocurrencies in recent months.
The forum was attended by financial giants such as Bank of America, Visa and Mastercard and was reportedly aimed at fostering discussion among executives and politicians on how to work together to ensure developing technologies help businesses, consumers and the economy.
The current stablecoin bill is being negotiated between House Financial Services Committee Chair Maxine Waters and the committee’s first Republican, Representative Patrick McHenry.
Risk Disclosure: The articles and articles on Arover.net do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies.