• Lawmakers from the US House of Representatives are debating regulations on stablecoins.
• Partisan differences and bickering between the two sides may delay the passing of any new law.
• Dante Disparte, Chief Strategy Officer at USDC-issuer Circle, spoke to lawmakers about the need for payment stablecoin legislation.

Lawmakers Rekindle Stablecoin Regulation Debate

Lawmakers in the US House of Representatives are again looking at regulations on stablecoins under new Republican leadership, but partisan differences and bickering between the two sides may delay the passing of any new law on the topic. The hostile attitudes across partisan lines were described in a recent Bloomberg report as “a bad sign” for any prospects of reaching a quick agreement, despite stablecoins being one of a few areas where Democrats and Republicans in the past have found some common ground.

Partisan Rifts Revealed

The bickering again came to light on Wednesday this week, when Republicans and Democrats on a House Financial Services Committee subcommittee began a hearing on the topic titled “Understanding Stablecoins’ Role in Payments and the Need for Legislation.” At the hearing, Patrick McHenry, Republican representative who chairs the committee said that a draft bill released earlier this month should be used as foundation for federal framework on matter. However Maxine Waters disagreed stating that negotiations between her and McHenry have not been completed yet and that starting anew was necessary before negotiations can start over again.

USDC Issuer Makes Case For Stablecoins

Among those present at Wednesday’s hearing was Dante Disparte, chief strategy officer and head of global policy at USDC-issuer Circle who made a case for why dollar-denominated stablecoins are far better than cash for use cases such as foreign aid and disaster relief. He noted how it is important to pass payment stablecoin legislation so these use cases can be implemented safely an securely with minimal risk or disruption to existing financial systems.

Bipartisan Support Essential

The need for bipartisan support is essential if regulations regarding stable coins are going to be passed anytime soon as disagreements between both parties will only cause delays in passing laws which could prove detrimental overall given how quickly technology is evolving nowadays. It is also important that disagreements do not lead to animosity between Democrats and Republicans as this will make it even more difficult to reach an agreement in future hearings.

Conclusion

As shown by this hearing it is clear that progress needs to be made if legislators wish to pass laws regulating stablecoins soon; however they must first come together in order form consensus amongst themselves before they can truly make any real progress forward with their plans