Rep. Maxine Waters, the ranking Democrat on the Financial Services Committee, expects to reach an agreement with Chairman Patrick McHenry on regulating stablecoins. This prediction is in line with Senators Cynthia Lummis and Kirsten Gillibrand introducing bipartisan legislation aimed at regulating stablecoins. This move underscores Congress’s increasing urgency to address the regulatory landscape surrounding digital currencies.
Waters stresses the need for federal regulation to protect investors and ensure stablecoins are adequately backed by assets. This sentiment is echoed by stakeholders such as leaders of the Senate, the Federal Reserve, the Treasury Department, and the White House, all of whom helped draft the bill. Jeremy Allaire, CEO of Circle, echoes this prediction, anticipating significant legislation for the stablecoin sector in 2024, with potential ramifications for the $135.3 billion cryptocurrency market.
The push for marijuana banking legislation is gaining momentum
In parallel with efforts to regulate stablecoins, Rep. Maxine Waters is calling for marijuana banking to be legalized. This call aims to address federal restrictions that hinder the cannabis industry’s access to banking services. Although legalized in various states, federal regulations have forced cannabis businesses to rely mostly on cash, posing challenges to financial transactions and security.
Waters expresses optimism about bipartisan support to overcome potential opposition to marijuana banking legislation. Notably, Senate Majority Leader Chuck Schumer has committed to addressing the issue, signaling a potential shift in federal policy.
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The potential legislative package combines stable banking and marijuana bills
Chairman Patrick McHenry and Representative Maxine Waters are considering merging stablecoin legislation with marijuana banking legislation and a bill addressing executive compensation at failed lenders. This legislative strategy aims to address several financial and regulatory issues simultaneously.
Lawmakers are exploring the possibility of linking the proposed legislative package to the Federal Aviation Administration reauthorization bill. This approach reflects a strategic effort to advance key legislative priorities while leveraging must-pass legislation to enhance bipartisan cooperation and address pressing issues within the financial sector.
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