Congress Nears Agreement on Stablecoin Regulation Amid Differences

The U.S. Senate may soon vote on a bill regulating stablecoins, marking a significant step for crypto legislation. However, Representative French Hill highlighted the need to resolve key discrepancies between the Senate and House versions before they can become law. During an Atlantic Council event, Hill emphasized that while both bills are similar, differences exist that are manageable but require clarification. One standout difference involves the House's stricter requirements for international stablecoin issuers seeking to operate in the U.S., particularly affecting major tokens like Tether’s USDT. The House version mandates that issuers must be registered in the U.S. or come from jurisdictions recognized for having similar regulatory frameworks, as opposed to the Senate's more lenient stance. Furthermore, Hill noted other regulatory pathways that vary between the two chambers regarding who can issue stablecoins and how. This difference has sparked concerns from some lawmakers about tech companies potentially gaining financial power. Hill pointed out that achieving consensus on stablecoin regulation could lead to smoother negotiations on broader crypto oversight, although the Senate has historically faced challenges in moving crypto legislation forward. Hill remains hopeful for progress, citing the urgency to meet commitments from President Trump for legislative action before the August recess. Both chambers must pass identical versions of the bill for it to be signed into law, prompting the House to either adopt the Senate's language or negotiate a compromise. Recently, the Senate committee has shown overwhelming bipartisan support for the stablecoin legislation, though delays have occurred due to calls for more safeguards against illicit activities. The involvement of figures like Trump has complicated discussions, according to Hill, necessitating a focus on core regulatory issues regardless of the distractions.