Rep. Warren Davidson: There is a “little likelihood” that the stablecoin law will be passed this year.

New stablecoin law that targets “endogenously collateralized stablecoins” surfaced earlier this week.

According to U.S. Congressman Warren Davidson, there is a remote possibility that the U.S. House of Representatives would approve the legislation regulating stablecoins before year’s end, however it is more probable that it will do so in the first quarter of 2023.

According to a Kitco article published on Thursday, Davidson made the following suggestions on September 22 during the Annual Fintech Policy Forum:

There is a remote possibility that we can get agreement on a stablecoin bill this year.

The term “stablecoin bill” appears to relate to proposed legislation this week that will outlaw new algorithmic stablecoins like TerraUSD Classic for two years. The proposed legislation targets “endogenously collateralized stablecoins” (USTC).

Although “there’s a chance we get to yes on stablecoins this year,” Davidson continued, “it’s something that can be reached by the first quarter of 2023.”

If we don’t, I think we can do it with a Republican majority in the first quarter of the next year, he added.

Davidson is seen as being pro-crypto and previously presented the “Keep Your Coins” measure, which sought to shield privately held cryptocurrency wallets from U.S. government oversight.

Numerous laws with the goal of regulating stablecoins have been proposed in the US, including the one put up on February 15 of this year by US Representative Josh Gottheimer.

Rohit Chopra, the director of the Consumer Financial Protection Bureau (CFPB), allegedly spoke at the occasion and thinks stablecoins have the potential to be adopted widely, noting:

I believe that a stablecoin that is supported by a major mobile operating system or payment network may swiftly gain ubiquity.

According to Chopra, if stablecoins do experience this type of quick acceptance, the stability of the world’s financial system may be seriously impacted.

The head of the CFPB also cautioned that Washington could be ignoring other fintech developments as a result of its recent heavy attention on cryptocurrencies.

Financial behemoths including Bank of America, Visa, and Mastercard attended the meeting, which was purportedly intended to stimulate conversation between CEOs and politicians about how they might cooperate to guarantee that emerging technology benefit businesses, customers, and the economy.

Maxine Waters, the chair of the House Financial Services Committee, and Rep. Patrick McHenry, the committee’s senior Republican, are negotiating the current draft legislation for stablecoins.

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