Sherrod Brown, the chair of the Senate Banking Committee in the United States, has disclosed his plans to push forward a significant stablecoin bill by combining it with legislation concerning marijuana businesses and recovering compensation for bankers. The senator has expressed his willingness to pass stablecoin legislation in Congress, provided that his concerns are addressed. His proposed strategy involves bundling the stablecoin bill with a bill that authorizes banks to engage in business with companies that sell marijuana, as well as implementing clawbacks for executives of failed financial institutions.
Despite support from various members of Congress and industry leaders, lawmakers in both the House of Representatives and Senate have largely failed to make progress on bills addressing regulatory concerns surrounding stablecoins. In February, Maxine Waters, the Ranking Member of the House Financial Services Committee, stated that Democrats and Republicans were nearing a compromise on a stablecoin bill. In the Senate, a bipartisan group led by Republican Cynthia Lummis and Democrat Kirsten Gillibrand has been at the forefront of similar legislative efforts.
Concerns about establishing a comprehensive framework for stablecoins have been voiced by members of both political parties in both chambers of Congress. In July 2023, one of the proposed bills in the House, known as the Clarity for Payment Stablecoins Act, advanced out of committee and was scheduled for a full floor vote. However, there has been minimal progress on the legislation since then.
If lawmakers decide to move forward with legislation related to digital assets in 2024, they will also have to navigate the opinions of their pro- and anti-crypto constituents during an election year. The control of the House, Senate, and Presidency will be up for grabs. Senator Brown, who has frequently expressed concerns about the risks associated with digital assets in committee hearings, is expected to face Republican nominee Bernie Moreno in the race for his Ohio seat. In addition, Representative Patrick McHenry, the chair of the House Financial Services Committee, announced in December that he will not seek reelection. Both of these leadership positions could play a crucial role in advancing crypto bills starting in 2025.
In conclusion, Senator Brown is planning to combine a stablecoin bill with legislation concerning marijuana businesses and compensation for bankers in order to advance these initiatives in Congress. However, progress on stablecoin bills has been slow, despite support from various lawmakers. The upcoming election year will also present challenges for lawmakers considering digital asset-related legislation.