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Top Democrat Maxine Waters (NYSE:WAT) of the House Financial Services Committee has released a discussion draft outlining a proposed regulatory framework for stablecoins.
The draft suggests that federal regulators—like the Comptroller of the Currency, the Federal Reserve, and the Federal Deposit Insurance Corporation—along with state regulators, should oversee stablecoin operations. It also calls for stablecoin issuers to meet reporting requirements and maintain reserves on a one-to-one basis.
The proposal reflects Waters’ ongoing efforts with former committee chair Patrick McHenry to create a comprehensive approach to stablecoin regulation since 2022. Despite Waters’ previous criticism of a bill passed by the Republican-led committee last year, her current draft is informed by those discussions. Waters had previously expressed hope for a "grand bargain on stablecoins" before the end of 2024, although that goal has yet to be achieved.
In contrast, Republicans on the committee, led by Chair French Hill and Rep. Bryan Steil, introduced their draft legislation last week. Their version grants the Office of the Comptroller of the Currency the power to approve and supervise federally qualified nonbank payment stablecoin issuers, diverging from Waters’ draft which requires Federal Reserve involvement.
The legislative activity on stablecoins extends beyond the House, with Sen. Bill Hagerty introducing a Senate bill titled "Guiding and Establishing National Innovation for US Stablecoins." Hagerty’s bill was announced just before a February 4 press conference, where lawmakers disclosed their plans to form a working group to establish rules for cryptocurrencies and stablecoins, involving members from both the House and Senate committees related to financial services and agriculture.
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