Senate Banking Committee Prepares for Stablecoin Hearing

The Chairman of the Committee, Senator Sherrod Brown, has sent inquiry letters to stablecoin issuers and exchanges.

article-image

Sen. Sherrod Brown (D-O.H.); Source: Shutterstock

share
  • The Senate Banking Committee has sent letters to Coinbase, Gemini, Circle, Paxos, TrustToken, Centre, and Binance US to inquire about consumer protections and stablecoins
  • This move is the first step before a hearing on the topic, and Sen. Brown (D-O.H.) wants a response by December 3

Senator Sherrod Brown (D-O.H.), Chair of the Senate Banking Committee, has sent inquiry letters to major stablecoin issuers and exchanges as the Committee seeks more information on the topic in the lead up to a likely hearing next year. 

In a letter to Circle CEO Jeremy Allaire, posted online, Sen. Brown expressed concern about the lack of transparency around stablecoins and questions the consistency of the redemption process. 

Loading Tweet..

“I have significant concerns with the non-standardized terms applicable to redemption of particular stablecoins, how those terms differ from traditional assets, and how those terms may not be consistent across digital asset trading platforms,” the Sen. Brown wrote to Circle, the payments company behind USDC. “Because the term stablecoin is used broadly, users may not appreciate the complexity and distinct features and terms of each stablecoin.”

Brown wrote that he would like a response by December 3, and requested that his questions be answered in “clear, straightforward terms.”

Earlier this year, the President’s Working Group on Financial Markets issued a report that urged stablecoin issuance be limited to banks, citing market integrity concerns. 

For its part, Circle’s Jeremy Allaire tweeted his support for further government oversight and regulation of the market, writing that he looks forward to “responding and working with you to ensure consumers are appropriately protected.”

Loading Tweet..

Brown also penned a letter to Tether, the largest stablecoin issuer, asking similar questions. In February, Tether’s parent Bitfinex settled with the New York Attorney General over irregularities in reporting the reserves it is backed by. In addition, Tether is currently being probed by the Department of Justice over allegations of bank fraud.

Banks and crypto on the same side?

As digital assets become more of a mainstream asset class, regulatory scrutiny around them is increasing. President Biden’s pick for the head of Office of the Comptroller of the Currency, Saule Omarova, a professor at Cornell University Law School, said that she wants to “end banking as we know it” but at the same time increase the regulatory intensity around crypto and stablecoins. She has also cited the “crypto revolution” as “benefiting mainly the dysfunctional financial system we already have.”

Omarova’s candidacy therefore marks a rare time when lobbying interests in D.C. supporting banks are against her nomination, making them potential allies to the digital asset industry.


Get the day’s top crypto news and insights delivered to your inbox every evening. Subscribe to Blockworks’ free newsletter now.


Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

The exchange’s full approval from the UAE’s Securities and Commodities Authority marks a regulatory milestone for global crypto oversight

by Blockworks /
article-image

Founded by Coinbase and Cruise veterans, CipherOwl plans to bring artificial intelligence to blockchain monitoring and risk detection

by Blockworks /
article-image

As the shutdown enters its second week, sources say the Senate Banking Committee looks to move ahead with a market structure bill markup

article-image

The collaboration expands Ripple’s Middle East footprint, supporting Bahrain’s blockchain adoption and future rollout of Ripple USD

by Blockworks /
article-image

The medical device firm will manage its $400 million Solana holdings using Coinbase Prime infrastructure to bolster its digital asset strategy

by Blockworks /
article-image

The deal gives PayPay a 40% stake in Binance Japan, linking digital assets with Japan’s largest mobile payment network

by Blockworks /