STABILIZING STABLECOINS?
On Wednesday, the House Financial Services Committee will mark up an array of bills that may or may not include as-yet-unintroduced legislation to rewrite the federal framework governing stablecoins. As we noted (see Client Report FSOC27), the sector’s travails have concentrated Congressional attention on the action first outlined in November by the President’s Working Group (see Client Report CRYPTO21), with any legislation brought to a vote this week sure to reflect the latest thinking from both the PWG and at least some of the rest of the Financial Stability Oversight Council. It only leaked revisions to the PWG plan and it’s far from clear if the CFTC agrees with these, but HFSC gives scant thrift to the CFTC. It falls outside the Committee’s jurisdiction and thus what it wants must be advanced by the Agriculture Committee for it to have any bearing on floor deliberations.