- Crypto policy expert Ron Hammond shared updates on the progress of stablecoin legislation in Congress.
- Hammond believes bipartisan support is possible for advancing stablecoin legislation.
- The policy expert concluded that only “time will tell” and that Congress is the “force to watch.”
In a recent Twitter thread, Ron Hammond, Director of Government Relations at the Blockchain Association, shared updates on the progress of stablecoin legislation in Congress. He emphasized the bipartisan collaboration and the significance of recent developments surrounding stablecoins.
1) This week in Congress and crypto: The House is back at it again with hearings on the banking crisis and stablecoins. There have been a variety of ups and downs with the stablecoin bill, but Congress is making progress. Here is the latest on stablecoin legislation…— Ron Hammond (@RonwHammond) May 15, 2023
Hammond started on how the journey towards stablecoin legislation began with policymakers’ concerns over Facebook’s Libra program. As the focus shifted to the transparency of reserves, he highlighted how the lack of clarity and the substantial market presence of stablecoins underscored the necessity for regulatory measures.
The crypto policy expert noted that in 2021, the Biden Administration convened banking regulators to evaluate stablecoin regulation, which led to a conclusion that congressional legislation was necessary. Consequently, throughout 2022, the House held hearings, engaged stakeholders, and drafted a bipartisan bill.
Furthermore, Hammond pointed out that the collapse of Terra and concerns over algorithmic stablecoins prompted a renewed sense of urgency for Congress. However, due to the election, the bill was not finalized.Hammond also mentioned that in early 2023, some regulators took action independently, which caused further market confusion. In addition, partisan politics and the role of the state versus federal regulators have complicated the drafting process.
Despite these, the policy expert expressed optimism about the possibility of bipartisan collaboration, stating:
“Rep. Waters (NYSE:WAT) highlighted publicly last week stablecoin legislation is needed. Remains to be seen if both sides come together, but it’s possible.”
Similarly, Hammond sees Rep. French Hill determined to advance stablecoin legislation this year. For the crypto expert, most issues can be resolved despite partisan differences.Nevertheless, Hammond said the question remains whether the Senate will take up the bill and answered: “Potentially, with enough Democrat support and pressure from the Biden Admin, but Senate Banking is a Committee that rarely moves legislation.”
In the end, Hammond acknowledged that only “time will tell” and that one thing is evident — “the House is the force to watch” in pursuing stablecoin legislation.
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