Republican Stablecoin Bill Draft Likely Won’t Make It to the Floor, Insiders Say

Even the revamped draft will need more bipartisan support


US Rep. Maxine Waters | majunznk/"Maxine Waters" (CC license)


House Republicans have some work to do if they want their stablecoin bill to pass, Hill insiders say, but both parties seem inclined to leave the SEC out. 

The current draft, which was revamped earlier this week, doesn’t have much chance of making it to the floor, people familiar with the matter said. 

Democrats and Republicans appear to agree somewhat on keeping the SEC out of stablecoin regulation. Both the new draft bill and former draft based on bipartisan negotiations have the Federal Reserve listed as the applicable regulator, according to Congressional documents obtained by Blockworks. 

But, insiders added, House Financial Services Committee Chair Patrick McHenry, the current draft’s main champion, will be giving up his seat as chair at the end of next session, so he may prioritize pushing this legislation through the House. 

An additionally amended version, ideally with some bipartisan support, is more likely to get introduced this session. A bill only endorsed by Republicans has next to no chance of making it through the Senate, sources added.

House Republicans unveiled the first iteration of their stablecoin bill ahead of last week’s subcommittee hearing. The newest version, released Monday, gives state legislators more control over the asset class, presumably in response to comments made at the hearing. 

Rep. Ritchie Torres, D-N.Y., said last week that he was unlikely to support any legislation that undermines the current stablecoin regulatory framework in New York. Hearing witness Adrienne A. Harris, superintendent of the New York State Department of Financial Services, highlighted advantages in allowing states to be more proactive in their approach. 

“Federal regulators are able to comprehensively address macroprudential considerations and establish foundational consumer and market protections,” Harris said. “[States can] act more nimbly to respond to industry developments and support responsible innovation given their ability to modernize regulations more quickly and leverage their more immediate understanding of consumer needs.”

Industry members and House Republicans are expecting a Democratic bill to drop soon, based on comments from Rep. Maxine Waters, D-Cali., at last week’s hearing.

The Republicans’ draft “in no way recommends the final work on stablecoins by negotiations between the two of us,” Waters said, referring to unresolved conversations with Hill. Democrats will have to “start from scratch,” she added.  

Neither Waters nor other committee Democrats have provided clarity on when an opposing bill may be introduced, or if one is even in the works. The party has also not yet publicly commented on the Republican’s new version of the bill. 

If a Democratic stablecoin bill does make it to the floor, it is likely to focus on issuer requirements; Democrats have largely maintained a view that issuers should be federally insured depository institutions. Clauses requiring stablecoin issuers and/or distributors to maintain some sort of know-your-customer and anti-money laundering standards can also be expected. 

Representatives from Waters’ office did not respond to Blockworks’ repeated requests for comment.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Templates.png


ZKPs enable efficient offchain transaction processing and validation, resulting in increased throughput and reduced fees. Solana's ZK Compression leverages ZKPs to minimize onchain storage costs, while Sui's zkLogin streamlines user onboarding by replacing complex key management with familiar OAuth credentials.


The crypto asset manager lowered its planned fee from 0.25% to 0.15%, undercutting its competitors


Plus, a look at planned ETH ETF fees and how they differ from their BTC counterparts


North Korea suspected in breach of Indian exchange’s multisig wallet


Plus, Sanctum’s CLOUD token has officially launched — but not without problems


It’s not yet clear whether Donald Trump is pumping bitcoin. But an unofficial memecoin is still seeing benefit.