Several stablecoin bills were up for discussion in the last few months, which were responsible for the latest stablecoin hearings in the US House.
The current stablecoin hearings in the US House of Representatives represented several versions and varied opinions of the stablecoin bills discussed in various levels of the country in recent times.
The representations of five experts were heard before the Subcommittee on Digital Assets, Financial Technology, and Inclusion, which was under the Financial Services House Committee.
Two bills were under the stablecoin hearings, each presented by the Republicans and the Democrats. The stablecoin bill by the Republicans would enable stablecoin issuers to avoid the Federal Reserve Board and choose the state they would like to register in. Democrats were not convinced by the probable ‘race to the bottom’ strategy that the stablecoin bill could influence.
The Republicans stated otherwise and implied that it would be like the US banking industry’s federal/state regulatory system.
On the other hand, the stablecoin bill tabled by the Democrats would continue regulations at the hands of the concerned authorities. In other words, Federal regulators would have access to regulate stablecoin issuers.
David Portilla from Davis Polk and Wardwell said, “Federal regulation of stablecoin issuers would offer more uniform, consistent rules, whereas state regulation could promote more diversity and innovation in regulation and supervision. The answer to this question need not be binary.”
Several more representations were heard in the stablecoin hearings, where legislators and industry insiders put forward their opinions regarding the stablecoin bills.