McHenry believes that stablecoins have the potential to play a huge role in the 21st-century payments system.
Patrick McHenry, the Chairman of the House Financial Services Committee, has publicly shared that there’s an urgent need for lawmakers to pass into law, a stablecoin regulation. McHenry’s Monday comments followed briefly after payments giant PayPal launched its native stablecoin PYUSD earlier in the same day.
According to a press release, McHenry believes that stablecoins have the potential to play a huge role in the 21st-century payments system. However, he also believes that that will only happen if they are issued under a clear regulatory framework.
Lawmakers Are Divided Over Stablecoin Bill
McHenry admits that Congress is already doing great work in terms of legislation to ensure the US leads the financial system of the future. However, he also thinks that the time to “finish the job” may be now.
Recall that the House Financial Services Committee proposed a comprehensive regulatory framework for payment stablecoins in late July. Called the Clarity for Payment Stablecoins Act, the bill seeks first to protect consumers. At the same time, the bill also hopes to foster innovation in the US, according to McHenry.
But Democrats such as the former chair of that committee Rep. Maxine Waters, D-Calif., have quickly kicked. Waters raised concerns that the bill may allow giant companies like Amazon and Facebook to start issuing their own digital currencies.
So, while the bill has been approved, its chances of becoming law are somewhat still in doubt. That is because talks between congressional Democrats, Republicans and the White House have recently broken down. Republicans, represented by McHenry, blame the White House for stalling. Committee Democrats, on the other hand, believe that the Republicans are too much in a rush.
McHenry’s latest push for a stablecoin bill is, without a doubt, linked to PayPal’s Monday announcement. The payments firm revealed that it has partnered with Paxos to launch a stablecoin that will be pegged to the U.S. dollar. Although the stablecoin isn’t yet available to all PayPal users, the company promises a gradual release, starting with U.S.-based customers.
So now, McHenry is hoping that the Democrats see eye-to-eye on the need to quickly pass the bill into law. And hopefully, maybe a bipartisan compromise could be reached soon.
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