An anticipated stablecoin bill regulating the cryptocurrency sector could soon face a vote in the United States House of Representatives.
Accordingly, Rep. Maxine Waters, the House Financial Services Committee's top member, indicated that a final version is being finalized after extensive negotiations.
In a Bloomberg report, Rep. Waters stated that the legislation aims to guarantee the protection of investors.
On the other hand, this potential regulation would impose stringent rules on issuers of stablecoins. For instance, Tether (USDT) and USD Coin (USDC) have exploded in usage and market capitalization over the past years.
Previous draft versions of the bill targeted to require that stablecoin issuers maintain reserves equal to the value of tokens in circulation and undergo regular audits.
At the same time, it would also outlaw certain types of stablecoin models, like algorithmic stablecoins that rely on computer code rather than reserves to maintain their peg.
Moreover, Rep. Waters indicated that the Federal Reserve, Treasury Department, and White House have all provided input on the bill's language. She and Committee Chair Patrick McHenry have been negotiating the terms for nearly two years.
The renewed momentum comes as stablecoin regulation comes as a rare bipartisan priority in an increasingly polarized Congress. Both parties have voiced concerns about protecting consumers while enabling innovation in digital assets.
McHenry recently stated that the House bill merely needs to be scheduled for a floor vote, as per Coindesk.
Meanwhile, Senators Cynthia Lummis and Kirsten Gillibrand introduced their stablecoin legislation last week with similar tenets.
Subsequently, the Lummis-Gillibrand Payment Stablecoin Act proposed a $10 billion issuance cap and one-to-one cash reserves for non-bank stablecoin firms that could upend major players like Tether.