Political Divide Persists in US Congress Over Stablecoin Regulation

The US House Committee on Financial Services’ Subcommittee on Digital Assets, Financial Technology and Inclusion heard testimony from five experts as it considered two proposed bills to regulate stablecoins. The biggest point of disagreement was on state-level stablecoin regulation, with the Republican bill allowing stablecoin operators to choose the state they register in, while the Democratic bill preserves access to regulation in federal hands. Witnesses suggested a middle road, with federal regulation offering more uniform, consistent rules, and state regulation promoting more diversity and innovation in regulation and supervision.