State versus federal regulation was a key issue in the hearing on stablecoins in the United States House of Representatives on May 18. The House Committee on Financial Services’ new Subcommittee on Digital Assets, Financial Technology and Inclusion heard testimony from five experts as it considered two proposed bills to regulate stablecoins.
There were two draft bills under consideration by the subcommittee. The Republican bill was published in April ahead of a hearing on stablecoin in the Financial Services Committee. Ranking member Maxine Waters later introduced a competing draft based on a bill that was introduced but not passed in the last session of Congress.
#WATCH: Chairman @RepFrenchHill at today’s stablecoin hearing:
“Without action from Congress … stablecoin issuers will not feel confident to build their projects in the U.S.”
Read more https://t.co/9yWNDbG46G
Watch his full remarks pic.twitter.com/v3cMMxTTXr
— Financial Services GOP (@FinancialCmte) May 18, 2023
The “race to the bottom” was the biggest point of disagreement on state-level stablecoin regulation. The Republican bill would allow stablecoin operators to choose the state they register in, without going through the Federal Reserve Board.
Supporters of the bill argue the floor would prevent the race to the bottom and mirror the U.S. two-tiered federal/state…
