House Republicans and Democrats have introduced proposals to regulate US stubcoins, indicating that the sector is a legislative priority under President Donald Trump.
Maxine Waters, a ranking Democrat for the House Financial Services Committee, has announced proposals for Stablecoin oversight through federal watchdogs such as the Secretary of Currency, Federal Deposit Insurance Corporation and the Federal Reserve System, according to Punchbowl News.
The Waters discussion draft also outlines the state regulatory framework. In 2022, Rep. Waters criticized the Republican-led House Committee bill and was “deeply problematic” due to concerns about allowing state regulators to approve stablecoin without oversight from the Federal Reserve I called it. At the time, she argued before former committee chair Patrick McHenry that this approach could pose an unexpected risk.
The proposal from Congressman Waters means that both Republicans and Democrats have now introduced stubcoin restrictions since President Trump took office.
Last week, Rep. French Hill, the new Republican chairman of the House Financial Services Committee, introduced a draft bill for stubcoin control, co-hosted by Rep. Brian Steele. The bill allows the OCC's authority to approve and oversee payment stable issuers.
Specifically, the OCC can license and oversee non-bank stubcoin operators with federal permits. The rules will allow companies like Ripple to enter the $220 billion market.
Rep. Hill's bill is in contrast to Rep. Waters' proposal, assigns stablecoin surveillance to the OCC, rather than the Federal Reserve system that Waters advocated. Waters previously said that House members needed a “magnificent bargain for stablecoins” to advance regulations.
In the Senate, GOP Senator Bill Hagerty also introduced the “Guidelines and Establishment of National Innovation for the US Stabilizing Coin” Act. Policymakers also announced a twin working group focusing on passing crypto regulations at a press conference hosted by White House AI and Crypto Czar David Sacks..
