During a recent U.S. Subcommittee on Digital Assets, Financial Technology and Inclusion hearing, lawmakers failed to come to a consensus on a stablecoin bill. One expert witness, Austin Campbell, warned that the lack of regulatory clarity could drive stablecoin projects abroadHe highlighted that nations such as Singapore, Dubai, Abu Dhabi, and the UK have already presented structures for stablecoins, which may provide an advantageous regulatory landscape for issuers seeking a domicile. Campbell stated that if the US fails to act, people will take advantage of these options. He also advised those attempting to build or use stablecoins to avoid US operations and a US domicile.
The legislation proposed to regulate stablecoins in the United States was met with discontent from certain members of the committee, who shared similar concerns. While House Financial Services Committee Chair, Patrick McHenry, put forth a discussion draft bill on how to deal with stablecoins used for payments and a central bank digital currency, Ranking Member Maxine Waters cited recent events that could affect the drafting of the legislation. “An ‘ugly baby’,” is how Arkansas Representative French Hill, the chair of the Digital Assets Subcommittee, described the previous compromised bill.
