Patrick McHenry, the top House Financial Services Committee Republican, claims the Biden administration is holding up the stablecoin bill. He believes the bill can still pass Congress. But it’s up to the administration to come to the reality of votes on the Hill.
McHenry is grateful for the willingness of Chairwoman Waters to compromise. He highlighted that Democrats are in the majority and she doesn’t have to compromise with Republicans. However, McHenry thinks it’s important to have bipartisan legislation. He said the administration and the Hill policymakers are in different places. It’s up to the Hill to come up with a reasonable product for those who are serious policymakers.
The Financial Stability Oversight Council, which is led by Treasury Secretary Janet Yellen, recently reiterated a call for legislation around stablecoins. McHenry believes he is likely to have more leverage in drafting the legislation next year as Republicans are favored to take control of the House of Representatives after the midterm elections. He said Financial Services will be the primary mover on digital asset legislation next Congress regardless of what happens in the next two months.
The Fed is also waiting for Congress before they decide to issue a central bank digital currency (CBDC). The U.S Treasury department, in a recent report, had said that work on a digital dollar should continue while the executive branch also draws to a decision. Last month, sources said that the lawmakers negotiating the legislation are close to releasing the language that will be considered by the House Financial Services Committee in a markup.