Crypto Stablecoin Legislation Stalls: White House or McHenry to Blame?
• The much-anticipated legislation on stablecoins has hit a significant roadblock in the United States due to disagreements between Patrick McHenry and the White House.
• McHenry had intended to announce a consensus on the legislation with the committee’s senior Democrat, Maxine Waters, but it failed due to lack of compromise from the White House.
• Waters accused McHenry for halting negotiations and raised concerns over the current proposed bill.
Stablecoin Legislation Hits Roadblock in U.S.
The much-anticipated legislation on stablecoins has hit a significant roadblock in the United States. The question on everyone’s lips is – who is to blame for this legislative stalemate? Is it the White House or House Financial Services Committee Chair Patrick McHenry?
McHenry vs. White House
A bipartisan agreement on stablecoin legislation has eluded the House lawmakers, with Patrick McHenry (R-N.C.), the Chair of the Financial Services Committee, attributing the deadlock to the White House’s obstinacy. However, the committee’s leading Democrat countered this claim, suggesting that it was McHenry himself who brought discussions to a halt.
McHenry expressed his disappointment as he revealed that he had intended to announce a consensus on stablecoin legislation with Maxine Waters (D-Calif.), however due to what he described as failure of compromise from executive branch caused this negotiation standstill yet again . While expressing his dissatisfaction, he did not dive into details of disagreement with executive branch stating that a bipartisan agreement was almost achieved after 15 months of discussions which were disrupted by midterm elections , shift in majority control in U.S house of representatives and fallout from FTX collapse across digital asset industry .
Waters Criticizes McHenry’s Proposal
Waters vehemently criticized Mc Henry while raising her concerns regarding current proposed bill . According to her there are conflicts between two parties about regulations for money transmission services , scope and reach of rules related with custody etc . She also mentioned that there are still issues about preemption which have not been solved yet .
Even though previous attempts have failed , both sides remained optimistic about future prospects mentioning that they will keep working together until they reach some kind of agreement . This bipartisanship is necessary as any bill requires majority support from both sides which becomes even more difficult if white house remains adamant towards its stance regarding certain clauses included within proposal .
While it appears that both sides are close to reaching an agreement , further delays may be expected if white house does not show flexibility towards certain aspects included within draft proposal . Moreover , any delay in passing proposed bill can lead to stagnation in growth for digital asset market as well as long term effects related with same could be seen across all industries dealing with cryptocurrencies and blockchain technology .