Rep. Maxine Waters Proposes New Stablecoin Legislation Amid Ongoing Crypto Discussions

Rep. Maxine Waters is stirring up some excitement about a potential deal on stablecoin legislation. She recently proposed a plan to Rep. Patrick McHenry, the Republican chair of the committee that could finally move this long-stalled legislation forward.

A report from Axios mentions that this proposed package might also tackle issues like deposit insurance reform and banking access for legal cannabis companies. Sounds like a big step, right?

However, it’s still uncertain if McHenry or House Speaker Mike Johnson will give the green light to this proposal. If they do reach an agreement, they could use the National Defense Authorization Act to push the legislation through.

Interestingly, McHenry, a strong ally of the crypto industry, has decided not to run for re-election. This means he has limited time left in office. Democrats want to finalize this deal now to avoid starting fresh negotiations with a new Republican leader.

Stablecoin legislation has been anticipated for years but still hasn’t made it to a floor vote. This legislation mainly supports stablecoins backed by dollar deposits and other liquid assets, while steering clear of algorithmic ones. The current proposal has seen several changes compared to earlier drafts.

Stablecoins, which are cryptocurrencies pegged to the U.S. dollar, currently have a market cap of $172 billion and involve trillions in global transactions. Companies like PayPal and Visa are diving into this space, making the need for clear legislation even more pressing.

Passing stablecoin legislation would help update U.S. laws to better address parts of the cryptocurrency sector. But remember, any movement on this front hinges on the upcoming November 2024 elections.

Waters has long been a champion for stablecoin legislation and recently stated that the advancement of cryptocurrencies is “inevitable.”

Looking ahead, discussions about stablecoin regulation will be central topics at the upcoming Benzinga Future of Digital Assets event on November 19.

This content was partially produced with AI tools and was reviewed by Benzinga editors.

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