HomePoliticsWhite House Derailed Negotiation...

White House Derailed Negotiation on U.S. House Stablecoin Bill: McHenry


House lawmakers have failed to reach a bipartisan deal on stablecoins legislation, with Financial Services Committee Chair Patrick McHenry (R-N.C.) blaming White House intransigence for the stalemate while the panel’s top Democrat said it was McHenry who shut down the talks.

The news comes a day after the finance-focused lawmakers advanced three bills on crypto issues to a vote in the full House of Representatives, the first time they advanced laws fully dedicated to the topic.

“Today I had hoped to announce an agreement with the ranking member on stablecoins legislation,” McHenry said, referring to the committee’s senior Democrat, Maxine Waters (D-Calif.). “This will not be the case… It was the White House’s unwillingness to compromise that has once again brought that negotiation to a halt.”

McHenry said he was “disappointed” but did not explain the details of the disagreement with the executive branch.

Any U.S. stablecoin bill would also have to win support in the Democrat-led Senate, so a bill coming solely from House Republicans rather than a bipartisan effort may be less likely to influence that other chamber. McHenry’s choice to push the bill forward over the loud objections of committee Democrats may please fellow Republicans but could also harm its chances of becoming law.

Waters said the bill was “deeply problematic and bad for America,” and that it “promotes a race to the bottom by creating 58 different licenses,” allowing issuers to potentially include a wide range of assets in their reserve and allowing large corporations such as Meta or Walmart to issue money.

According to Waters, Democrats were concerned about the reserve provisions in the bill, as well as the parties’ different views on the role federal regulators should have over stablecoin issuers.

“I urge Republicans to pull this extremist piece of legislation from the markup and your culture wars,” Waters added, citing the lack of oversight from the Federal Reserve and lack of provisions on diversity and inclusion.

The Thursday markup of the Republicans’ stablecoin bill was highly contentious, with Republicans pushing forward and Democrats dragging their feet on every procedural point. The effort in the committee to openly negotiate the bill’s details underlines the ongoing stalemate for U.S. stablecoin oversight.

A White House spokesperson did not immediately respond to a request for comment. Waters said neither the Fed nor the U.S. Treasury Department support the bill as it stands.

During the debate, Stephen Lynch (D-Mass.) suggested voting be postponed to September, saying Democrats hadn’t had sufficient chance to pitch their ideas.

“We have had no meaningful opportunity to amend this bill … that’s an embarrassment,” Lynch said. “We want to be heard, and we want to have input on this.”

The Clarity for Payment Stablecoins Act was introduced by McHenry (R-N.C.) last week, and it seeks to offer a regulatory framework for crypto tied to the value of fiat currency. Stablecoins are a key element on the crypto markets, providing steady tokens with which investors can trade in and out of more volatile assets.

Rep. Bill Foster (D-Ill.) argued that Republicans have been defending the ability to make anonymous payments, saying that promoting self-hosted wallets would aid rogue regimes.

“I am sure that future victims of North Korean nuclear terror truly appreciate the consideration of my Republican colleagues,” Foster said, also referring to fentanyl producers accepting crypto payments.

McHenry has previously warned that rival jurisdictions are “ahead of the game” on regulating crypto, with the European Union’s markets in Crypto Assets regulation (MiCA) set to take effect in 2024.

Last week CoinDesk reported that a bipartisan grouping of Senators is pondering a rival bill that would put stringent anti-money laundering (AML) requirements on decentralized finance (DeFi) protocols, in effect treating them like banks.

Read more: House Financial Services Committee Votes in Favor of Crypto, Blockchain Bills

UPDATE (July 27, 14:45 UTC): Adds Lynch quote.

UPDATE (July 27, 15:17 UTC): Adds Foster quote, adds paragraph on Waters’ position.

UPDATE (July 27, 15:35 UTC): Adds context on importance of Dem votes for overall bill.



Source link

Most Popular

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More from Author

Read Now

Coachella Weekend 1 Recap, J Balvin’s Out Of This World Coachella Set, Metro Boomin & Future Top Hot 100 | Billboard News

It’s Monday April 15th, Billboard counts down the top 10 on the Hot 100, we’re running down all the headliners and special guest performers and some notable audience members that went down at the first weekend of Coachella, J Balvin gives us a behind the scene...

ACKO’s game-changing campaign with Disney+ Hotstar for ICC Men’s Cricket World Cup 2023 – Exchange4media

Amidst the exhilarating atmosphere that surrounded the ICC Men's Cricket World Cup 2023, where...

China’s Economy, Propelled by Its Factories, Grew More Than Expected

The Chinese economy grew more than expected in the first three months of the year, new data shows, as China built more factories and exported huge amounts of goods to counter a severe real estate crisis and sluggish spending at home.To stimulate growth, China, the world’s...

Angel Reese Picked 7th by Sky in 2024 WNBA Draft as Fans Hype Kamilla Cardoso Pairing

Welcome to Chicago, Angel Reese. The Sky made the former LSU star the No. 7 overall selection at Monday night's WNBA draft, adding the high-profile forward to the mix alongside No. 3 overall pick Kamilla...

GM says it will move headquarters from RenCen to Hudson’s site in 2025

Detroit — General Motors Co. announced Monday it will move its global headquarters to the Hudson’s Detroit development next year as it works with billionaire mortgage mogul Dan Gilbert's real estate firm to redevelop the Renaissance Center, its current home a mile away.GM CEO Mary Barra,...

Spotify planning to launch Music Pro subscription with lossless

A recent report revealed that Spotify is planning to raise the price of its subscription soon, at least in some countries. And for those who think that paying $10.99 a month for a music streaming platform is already too much, the company may soon introduce an...

Ryan Gosling’s Viral Beavis and Butt-Head Skit Was 5 Years in the Making

People watch Saturday Night Live to laugh, of course, but there are laughs and then there are sketches that last forever. This past weekend, Ryan Gosling hosted SNL and the episode may have featured one of those all-time sketches. What starts as a discussion of AI...

Angel Reese, Caitlin Clark dazzle on WNBA draft’s orange carpet

For the top picks of the 2024 WNBA draft, what they wear could be almost as memorable as where they land.Editor's Picks1 RelatedThe latest crop of hoops prospects -- including Caitlin Clark, Angel Reese and Kamilla Cardoso -- will learn where their pro basketball careers will...

Tesla lays off more than 10% of its workforce – BBC News

By Shiona McCallumTechnology reporter15 April 2024, 13:00 BSTUpdated 1 hour agoImage source, Getty ImagesTesla will lay off more than 10% of its global electric vehicle workforce.In a memo, first reported by news website Electrek, billionaire owner Elon Musk told staff there was nothing he hated more,...

Longtime Yankees voice Sterling retires after 35-year run

The legendary radio voice of the Yankees, John Sterling, is retiring effective immediately after more than three decades in the booth, he and the team said Monday.The Yankees and Sterling made the announcement after The Athletic reported on a planned news conference for this weekend in...