In the US, discussions continue regarding legislative initiatives related to stablecoins and cryptocurrency market structure. The proposals are aimed at creating a safer environment for the cryptocurrency economy.
Significance of Legislative Initiatives
Digital Assets Subcommittee Chair French Hill stated that stablecoin and market structure legislation are 'closely interconnected'. It is expected that both bills will provide the necessary protections for the cryptocurrency market. The Senate has approved the GENIUS Act, which aims to regulate stablecoins at the federal level. Ripple CEO Brad Garlinghouse previously described it as the most important financial legislation since the Dodd-Frank Wall Street Reform and Consumer Protection Act enacted in 2010.
Merging the Bills
Meanwhile, the House has its own stablecoin bill (the STABLE Act), and there are discussions about possibly merging this bill with the market structure bill (the CLARITY Act), which introduces broader rules for exchanges, wallets, and token classifications. Merging could help maintain legislative momentum after the passage of one bill.
Future of Cryptocurrency Regulation
The House is preparing for votes on both STABLE and CLARITY bills. If the bills are merged, the Senate will need to vote on the combined package. Pro-crypto Republicans aim to pass both bills before the August recess, but it remains to be seen whether they will be able to secure enough support. However, merging both bills might complicate negotiations with Democrats, potentially delaying a vote until next year.
The discussions around stablecoins and market structure in the US Congress highlight the importance of establishing clear rules for the cryptocurrency ecosystem. The success of these initiatives could significantly alter the future of the crypto market.
