Senate Banking Committee chair wants to combine stablecoin bill to boost chance of passage

A bill in the House of Representatives aimed at providing guardrails for stablecoins has not moved forward since July 2023.

Sherrod Brown, chair of the United States Senate Banking Committee, has reportedly revealed plans to advance a significant stablecoin bill by combining it with legislation related to marijuana businesses and clawing back compensation for bankers.

According to an April 16 Bloomberg report, Senator Brown said he was open to passing stablecoin legislation in Congress as one of his goals, provided his concerns were addressed. The U.S. lawmakers reported plans included placing the stablecoin bill in a package with legislation authorizing banks to conduct business with firms selling marijuana and clawbacks for executives of failed financial institutions.

Source: Yahoo Finance

Lawmakers in both the U.S. House of Representatives and Senate have largely failed to advance bills to address regulatory concerns around stablecoins despite support from many in Congress and industry leaders. In February, House Financial Services Committee Ranking Member Maxine Waters said Democrats and Republicans were “very close” to a compromise on a stablecoin bill. In the Senate, a bipartisan group headed by Republican Cynthia Lummis and Democrat Kirsten Gillibrand have spearheaded similar legislation efforts.

Many members of both political parties in both chambers of Congress have expressed concerns about establishing the proper framework for stablecoins in a comprehensive bill. In July 2023, one of the proposed bills in the House, the Clarity for Payment Stablecoins Act, moved out of committee and was set for a full floor vote. The legislation has seen little if any, movement since that time.

Should lawmakers move forward with digital asset-related legislation in 2024, they will also have to deal with their pro- and anti-crypto constituents in an election year. Control of the House, Senate and the Presidency is up for grabs.

Senator Brown, who has often spoken about the risks of digital assets in committee hearings, will likely face off for his Ohio seat against Republican nominee Bernie Moreno. Representative Patrick McHenry, who chairs the House Financial Services Committee, announced in December that he did not intend to seek reelection. Both leadership positions could be crucial in advancing crypto bills starting in 2025.