Lawmakers in the U.S. House of Representatives have reportedly delayed the timetable to consider a bill that addresses the potential risks of stablecoins.
Members of the House of Representatives may delay a vote on the stablecoin bill until September due to the inability to complete the draft in time for Wednesday’s committee meeting, the Wall Street Journal reported Monday, people familiar with the matter said. Issues not addressed in the bill reportedly include Treasury Department regulations on safekeeping of wallets and SEC concerns.
Treasury Secretary Janet Yellen reportedly wants to coordinate her response to the bill with the Biden administration. Neither has publicly commented on the proposed legislation, but Yellen has previously called for clarity on regulation of the cryptocurrency space around stablecoins, citing concerns about TerraUSD, formerly UST, de-pegging from the U.S. dollar. President Joe Biden’s executive order in March also aimed to address loopholes in digital asset regulation.
Great to hear @SecYellen concede that Congress needs to pass legislation to create a sound regulatory framework for stablecoins. pic.twitter.com/GXVvcKcKUb
— Senator Pat Toomey (@SenToomey) May 10, 2022
So far, lawmakers have delayed or been unable to reach agreement on a number of bills that propose regulating stablecoins in the United States. In February, New Jersey Representative Josh Gottheimer introduced a bill, the Stablecoin Innovation and Protection Act, that would allow the Federal Deposit Insurance Corporation to back stablecoins in a manner similar to fiat deposits. A bipartisan bill introduced in the Senate by Cynthia Loomis and Kirsten Gillibrand in June also proposes regulation of stablecoins issued by financial institutions, but consideration may be delayed until 2023.
Related: U.S. Turns Attention To Stablecoin Regulation
Across the pond, U.K. lawmakers have continued to push through stablecoin legislation amid a government reshuffle—many members resigned in July in response to soon-to-be former prime minister Boris Johnson’s response to the scandal. The country’s finance ministry has also reportedly begun considering legalizing stablecoins as a payment method.