Congress is taking swift action to shape the future of stablecoins in the crypto world. The House of Representatives just released its version, following the Senate’s recent approval of a similar bill.
New Bill to Align House and Senate Efforts
This new legislation will set rules for how companies can create and use digital tokens backed by the U.S. dollar, marking a major step in bringing more oversight and clarity to the growing crypto industry. Steil explained that the new version of the bill will help align the House and Senate’s efforts, making the two versions more similar and easier to work with.
The Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE Act) “is a strong continuation of our work on digital assets in the last Congress,” Hill said in a statement.
Rep Emmer Reintroduces Securities Clarity Act
Besides, on Wednesday, Rep. Emmer reintroduced his Securities Clarity Act, aiming to clarify how crypto assets fit into securities law.
“Until we have a clear definition of what is a commodity and what is a security, American innovation will continue to suffer. Our legislation will help provide these answers and allow American investors to fully participate in digital asset technology without sacrificing consumer protections,” Congressman Tom Emmer noted.
As the conference came to an end, the Senate held a second vote to overturn the IRS’ 2024 rule on DeFi brokers, after both the Senate and House passed the resolution before. The vote passed with 70 Senators in favor and 28 against.
Amanda Tuminelli, Executive Director of the DeFi Education Fund, thanked the bipartisan lawmakers who supported the resolution, pointing out the negative effects of the IRS’ rule on the DeFi industry.
French Hill to Release Revised FIT 21 Bill Shortly
At the DC Blockchain Summit on Wednesday, House Financial Services Committee Chair French Hill also mentioned that a revised version of the market structure bill is almost ready, following work from his committee last year.
The bill, called FIT 21 (Financial Innovation and Technology for the 21st Century Act), passed the House last year with support from 71 Democrats, including former Speaker Nancy Pelosi. Hill plans to release a revised draft in the next few weeks, after receiving “technical assistance.”
The market structure bill from last year aimed to give the Commodity Futures Trading Commission more control over crypto markets, especially bitcoin, and clarify the SEC’s role.
Passing the market structure bill is more challenging than the stablecoin legislation due to its complexity. When FIT 21 passed the House, it was influenced by opposition to former SEC Chair Gary Gensler and former President Joe Biden, leading to some compromises. However, now, with a different political landscape, those compromises may no longer be needed.
Stablecoin Regulation Picking Up
The Senate Banking Committee recently advanced the bipartisan GENIUS Act, which aims to establish a framework for regulating stablecoins and determining when issuers fall under state or federal oversight.
Some Democrats voiced concerns and sought changes, but they were unsuccessful. Meanwhile, in the House, Republicans, led by Rep. Bryan Steil, introduced the STABLE Act in February to regulate stablecoins.
