Following the $60 billion collapse of stablecoin Terra Luna that led to a $2 trillion shrinkage in the crypto market just a few months ago, the cryptocurrency industry which seems unable to Self-regulating could fall victim to rapidly evolving legislation negotiated behind closed doors by elected members of Congress and top-ranking Treasury officials. Forbes Digital Assets confirmed with a person familiar with the negotiations who had seen variations of the language in the bill confirmed ongoing negotiations at the Treasury.
According to the source, Financial Services Committee Chair Maxine Waters (D-CA), ranking member Patrick McHenry (R-NC) and a senior Treasury official who reports directly to Secretary Yellen who is seeking a deal have been involved. to negotiations. for a bipartisan stablecoin bill that could pass Congress and make it to Biden’s desk to become law. This means that there could be a bill as soon as next week that would essentially come from the president’s desk if the White House accepts the compromise, making this legislation very different from other bills that the cryptocurrency industry have seen before.
So what does all this mean? This means that crypto lobbyists could hold their ground in Washington DC over the weekend while their colleagues head to the beach, as there may be an extremely short window of time where any meaningful change can be worked through by members. leading to a markup hearing. from Wednesday.
For readers unfamiliar with the idea of ’markup’, it’s usually the very last phase of how a bill goes through a committee before the bill goes to be sent to the House for a vote to try to pass the bill. . While many in the crypto industry have been accustomed to numerous congressional hearings and discussions about the possibilities of different types of legislation, the vast majority of bills fail to pass. For a bill few people have yet seen, a few days on Capitol Hill isn’t long for stakeholders to propose changes or comment before markup.
The real question is why is the US Treasury so focused now on passing a stablecoin bill, especially one that appears to deviate from their recommendations in the panel’s report and recommendations? president’s work on stablecoins. However, Treasury Undersecretary for Home Finance Nellie Liang said there may be some flexibility in one of her suggestions in the report that only banks would issue stablecoins from last Monday. in a speech.
The question of why all of this is happening now could either be a genuine interest for lawmakers to “tame the Wild West” of crypto, because the industry couldn’t do it on its own. Alternatively, government officials may be worried that the crypto industry is on the way out after the $60 billion stablecoin crash led to a 66% reduction in the overall crypto market capitalization. However, as Friday evening has passed and no report on the final results of the negotiations has been released, the public may have to wait until Wednesday when the bill enters markup to hear the final language. and the proposed stablecoin regulation policy.