The United States-based Democrats and Republicans may likely reach an agreement regarding the proposed legislation for the regulation of the stablecoins within the jurisdiction. A couple of senior participants of the US House of Representatives-based Financial Services Committee, who drafted the legislation for stablecoin regulation, stated that Republicans seek legislation for the regulation of stablecoins on a state level.

Democrats and Republicans in the US Collaborate for a Bill on Stablecoins

Nonetheless, the respective thing would not pose a major issue in proceeding with the bill, as per those participants. The reports have pointed out that Republicans and Democrats were formerly not agreeing in the case of the proposed legislation. In addition to this, the House Financial Services Committee has altered its planned vote on the bill to establish a regulatory agenda to cover stablecoins and crypto trading in the country’s jurisdiction.

James French Hill, the US Republican party’s representative for Arkansas, stated that they intend to provide a state-wise pathway for the regulations dealing with stablecoins. The Representative remarked on an online event. The respective event was conducted with the Atlantic Council (a think tank based in Washington).

 French Hill brought to the front that according to the draft legislation’s present version, the US Federal Reserve possesses the authority to review or enact the regulations concerning stablecoins. Previously, Jerome Powell (the Chairman of the Federal Reserve) mentioned in a testimony confronting the US Congress that a role should be played by the central bank in the payment tokens’ regulation.

Representative Jim Himes has additionally expressed analogous sentiments during that event. He acknowledged the debate regarding the state and federal policy regarding stablecoin regulations. In this respect, he asserted that the respective debate would not become a significant hurdle to halt the proposed legislation from turning into a law.

The representatives are of the view that the thorough regulatory agendas for crypto and stablecoin markets in the United States would advance by July’s end. The House Financial Services Committee has rearranged a vote on crypto and stablecoin bills. The respective vote is expected to occur within this week.

The committee debate and vote on the respective legislation is currently set for the 26th of July, according to a scheduling note delivered to the committee’s offices. If the legislation is authorized in the vote it will move forward to the Senate. At that stage, it will require authorization from the Democrats.

The Legislation Would Give More Authority to the CFTC Rather than the SEC for Crypto Regulation

To turn the bill into law, there is also a requirement for acceptance given by the Biden administration. The proposed legislation permits the Commodity Futures Trading Commission (CFTC) to have more authority in overseeing the crypto assets as compared to the US SEC. This could entirely revolutionize how the regulation of the industry is done.