Sherrod Brown, the chair of the United States Senate Banking Committee, has reportedly unveiled his plans to push for a significant stablecoin bill by combining it with legislation related to marijuana businesses and the recovery of compensation for bankers.
According to a report by Bloomberg on April 16, Senator Brown expressed his openness to passing stablecoin legislation in Congress, as long as his concerns were addressed. His plans included bundling the stablecoin bill with a package that also authorizes banks to engage in business with companies that sell marijuana, as well as implementing clawbacks for executives of failed financial institutions.
Despite the support from many members of Congress and industry leaders, lawmakers in both the U.S. House of Representatives and Senate have struggled to advance bills addressing regulatory concerns surrounding stablecoins. In February, Maxine Waters, the Ranking Member of the House Financial Services Committee, stated that Democrats and Republicans were nearing a compromise on a stablecoin bill. Meanwhile, a bipartisan group led by Republican Cynthia Lummis and Democrat Kirsten Gillibrand has been at the forefront of similar legislative efforts in the Senate.
Concerns about establishing a comprehensive framework for stablecoins have been expressed by members of both political parties in both chambers of Congress. One proposed bill in the House, the Clarity for Payment Stablecoins Act, made progress in July 2023 when it moved out of committee and was scheduled for a full floor vote. However, there has been little to no movement on the legislation since then.
If lawmakers decide to move forward with legislation related to digital assets in 2024, they will also have to navigate the opinions of their pro- and anti-crypto constituents in an election year. The control of the House, Senate, and Presidency is up for grabs.
Senator Brown, who has frequently voiced his concerns about the risks associated with digital assets in committee hearings, is expected to face off against Republican nominee Bernie Moreno for his Ohio seat. Additionally, Representative Patrick McHenry, the chair of the House Financial Services Committee, announced in December that he will not seek reelection. Both of these leadership positions could play a crucial role in advancing crypto bills starting in 2025.
In conclusion, while Sherrod Brown aims to advance a significant stablecoin bill by combining it with marijuana-related legislation and compensation recovery for bankers, lawmakers continue to face challenges in addressing regulatory concerns surrounding stablecoins. The upcoming election year will also add complexity to the decision-making process, and the leadership positions of key individuals will play a significant role in shaping future crypto legislation.