Rep. Warren Davidson: Stablecoin bill has ‘outside chance’ of finalizing this year

There is a small chance the U.S. House of Representatives could pass the bill to regulate stablecoins by year-end, though it’s more likely it will pass in the first quarter of 2023, says U.S. Congressman Warren Davidson. 

According to a Thursday report from Kitco, Davidson made the remarks at the Annual Fintech Policy Forum on Sept. 22, where he suggested:

“There’s an outside chance we find a way to get to consensus on a stablecoin bill this year.”

The “stablecoin bill” seemingly refers to draft legislation aimed at “endogenously collateralized stablecoins” which came to light this week – and would place a two-year ban on new algorithmic stablecoins such as TerraUSD Classic (USTC).

However, Davidson went on to say that while “there’s a chance we get to yes on stablecoins this year,” it’s something that can be achieved by the first quarter of 2023.

“If we don’t, it’s something that I think we can get to with a Republican majority in Q1 next year,” he said.

Davidson is widely seen as crypto-friendly and has previously introduced the “Keep Your Coins” bill which aimed to protect self-custodied crypto wallets from U.S. government control.

A number of bills aimed at regulating stablecoins have been introduced in the U.S., such as the one that was introduced on Feb. 15 this year by U.S. Rep. Josh Gottheimer.

The Director of the Consumer Financial Protection Bureau (CFPB), Rohit Chopra, also reportedly spoke at the event and believes that stablecoins have the potential for widespread adoption, noting:

A stablecoin, riding the rails of a dominant payments system or a mobile OS, I think that could create ubiquity very quickly.

Chopra added that if stablecoins do see this kind of rapid adoption, they could have a serious impact on global financial stability.

Related: 3AC founders reveal ties to Terra founder, blame overconfidence for collapse

The CFPB director also suggested that Washington may be neglecting other areas of fintech development due to its intense focus on crypto in recent months.

The forum was attended by financial giants such as Bank of America, Visa and Mastercard and reportedly aimed at fostering discussion between executives and policymakers as to how they can work together to ensure developing technologies help businesses, consumers and the economy.

The current draft bill for stablecoins is being negotiated between House Financial Services Committee Chair Maxine Water and the committee’s top Republican, Rep. Patrick McHenry.

All Dutch and English crypto news!

Crypto Biz: The Voyager Digital auction is over. What now?

Voyager Digital filed for Chapter 11 bankruptcy in July after its exposure to the toxic Three Arrows Capital led to its ultimate downfall. This week,...

Bitcoin retests key $20K level- can bulls get a higher close?

Bitcoin price rose sharply again on Friday as a dose of volatility helped BTC add nearly $1,000 within hours to top the $20,000 mark. Indeed,...

Crypto recap 30 september: WINACTIE Bitcoin Amsterdam

In deze video behandelt Axel de laatste ontwikkelingen in de crypto markt. Dit doet hij met de onderbouwing van nieuwsberichten en technische analyses. Op deze...

Blockchain interoperability goes beyond moving data from point A to B — Axelar CEO Sergey Gorbunov

Cross-chain communication between blockchains is more than just moving data from point A to B, but how it can connect applications and users for enhanced...

Beste exchanges

Koop je crypto bij Bitvavo