Patrick McHenry, a senior member of the U.S. The House of Representatives’ Financial Services Committee believes that “fintech talk has reached a dead end” and the real issues need to be addressed again. He is currently negotiating legislation that could at least bring more clarity to stablecoins.

There is currently no federal definition of digital assets or stablecoins in the United States, McHenry said, calling the situation “retrograde.” McHenry, House Financial Services Committee Chair Maxine Waters and the Treasury Department spent months negotiating legislation to regulate stablecoins “in an election year, in a divided Washington.” He spoke favorably of the bipartisan nature of the new legislation and the compromises made between him and Waters, saying:

“We are negotiating an asset, that is, a narrowly defined set of assets, collateral 1:1, without leverage. [..] Then we move on to more complex conversations.”
Speaking at DC Fintech Week, McHenry called “the funds that we hold” for stablecoins, the regulation of wallets and the designation of a federal regulator for them, unresolved issues. These solutions are “less science, more art,” he said. According to McHenry, the resulting draft is “a pretty ugly baby” who added that he could grow into something more attractive.

Related: Republican lawmakers demand digital dollar answers from Fed vice chair

McHenry said that if he becomes chairman of the Financial Services Committee after the midterm elections, he will prioritize cryptocurrency regulation. McHenry could become chairman of the committee if the Republican Party wins a majority in the House of Representatives. He has been a longtime advocate for bipartisanship in cryptocurrency legislation.

Waters, who spoke briefly at the conference the day before, also mentioned stablecoins and the issue of digital wallets. She emphasized the need to make the technology user-friendly, especially since “people are often excluded from the traditional economic system.”

On Oct. 3, the Treasury Department’s Financial Stability Oversight Board urged lawmakers to pass a law placing regulatory responsibility for cryptocurrencies on regulators. There are many bills aimed at regulating cryptocurrencies, including the Digital Goods Consumer Protection Act of 2022 in the Senate and House of Representatives, the Lummis-Gillibrand Responsible Financial Innovation Act, and the Digital Commodity Exchange Act of 2022.

Source: CoinTelegraph