CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$22,990.00
  • ethereum
    ETH$1,638.82
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » Stablecoin Bill Delayed to September After Treasury Raises Concerns

    Stablecoin Bill Delayed to September After Treasury Raises Concerns

    Author: Andrew Throuvalas

    Last Updated Jul 26, 2022 @ 16:34

    Democrats and Republicans butted heads over a last-minute provision suggested by the Treasury, which will delay its markup by over a month. 

    The House Financial Services Committee has pushed back its long-awaited stablecoin bill to September following objections from Treasury Secretary Janet Yellen. This will delay congressional discussions on the subject until after the August recess, which ends on September 5th. 

    Stablecoins and Bankruptcy

    The legislation – negotiated between Committee Chair Maxine Waters (D-Calif) and Patrick McHenry (R-NC 10th District) – was initially scheduled for markup on Wednesday, July 27th. Its intention is to allow banks to issue stablecoins, and to let non-banks do so under oversight from the Federal Reserve. 

    However, its legislative framework has furrowed the brows of both the Independent Community Bankers of America and the US Treasury. Secretary Yellen called Waters on Friday airing issues about how it would manage stablecoins held in custody on consumers’ behalf. 

    Treasury reportedly suggested that the bill require wallet custody providers to segregate customers’ assets, ensuring their preservation in a bankruptcy scenario. 

    This led to a stifling debate on the bill, which lawmakers claimed was near completion as of last week. Democrats attempted to implement the Treasury’s proposed change, while Republicans opposed it. 

    ADVERTISEMENT

    Caitlin Long, CEO of digital asset bank Custodia, said this exact issue presents an “inherent problem” for non-bank stablecoin issuers. “Special receivership rules for banks & broker/dealers are designed to respect asset segregation,” she tweeted on Monday. 

    The roadblock highlights Washington’s inability to establish a firm legislative foothold in crypto, alongside the growing partisan divide on the subject. 

    Senators Lummis (Republican) and Gillibrand (Democrat) deliberately tried to foster cross-party cooperation on their digital asset bill unveiled in June. Though their proposed legislation also creates a stablecoin framework, Lummis believes it will likely not be tabled until 2023. 

    Prioritizing Stablecoins

    Stablecoins are arguably the largest blockchain innovation on both Washington’s and the Federal Reserve’s radar. 

    Both Waters and McHenry called stablecoins a top priority following the President’s Working Group report on the assets in November. It warned that they may pose risks to financial markets, or assist criminals with money laundering if left unregulated. 

    The central bank has also been exploring central bank digital currency (CBDC) as a potential alternative, or complementary partner to stablecoins. However, McHenry opposed this idea in May, claiming there were no cases for which CBDC issuance was necessary.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • Hester_Peirce
      SEC Commissioner Calls for Accelerated Stablecoin Regulations After the UST Fiasco
    • NewYorkCity
      New York DFS Rolls Out New Regulations for Dollar-Pegged Stablecoins
    • Regulations
      The Crypto Market Crash Prompts the FSB to Propose Global Regulations (Report)
    Tags: Regulations Stablecoins US Congress
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Andrew Throuvalas
    More posts by this author

    Andrew is a content writer with a passion for Bitcoin. He became familiar with Bitcoin back in 2013, but began diligently studying the blockchain technology and its economic implications in 2017. Ever since, he’s believed in the network’s power to replace the current global monetary system, and provide financial freedom to billions worldwide.
    Contact: Medium | LinkedIn | Twitter

  • bitcoin
    BTC$22,990.00
  • ethereum
    ETH$1,638.82
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    Why ZK-Rollups Are the Future of Ethereum Scaling: Interview with StarkWare PM Gal Ron

    Why ZK-Rollups Are the Future of Ethereum Scaling: Interview with StarkWare PM Gal Ron

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!