The US House Financial Services Committee (HFSC) chair updated the public on the planned approach to the crypto-related legislation this year. Representative French Hill, who chairs the Digital Assets subcommittee, revealed that the US lawmakers had identified two draft legislations targeting clarity in the virtual assets regulatory context.
US Lawmaker Optimistic of Successful Crypto Bills in 2024
Rep French Hill addressed the audience during the Foundation for Defense of Democracies (FDD) event on Monday, January 29. He indicated that the HFSC members had identified the Financial Innovation and Technology for the 21st Century Act alongside the Clarity for Payment Stablecoins Act tabled in July 2023 for the next stage.
Rep Hill considered that the Clarity for Payment Stablecoins Act would address the regulatory gap due to missing firm guidelines on issuance and oversight of payment stablecoins.
Representative Hill hailed the House of Representatives lawmakers for selflessly supporting the course to bring regulatory clarity to digital assets legislation. He indicated that the lawmakers realized a refined working draft of the Clarity for Payment Stablecoins Act by the end of last year. The subcommittee chair anticipates that both draft proposals will recognize a similar track in the coming days.
Hill informed the audience that he was optimistic that the draft legislation would come to fruition this year. He hailed the participative nature of the meetings held towards streamlining and debated both bills.
Stablecoin Legislation Garner Lawmakers Support
Representative Hill’s pronouncement coincides with a period when little activity regarding digital asset-focused bills is evident since the period resumed this year.
The HFSC had approved the draft legislation. The Clarity for Payment Stablecoins Act, the Financial Innovation and Technology for the 21st Century Act, and the Clarity for Payment Stablecoins Act are due for a full vote on the House floor.
Representative Hill affirmed his support for the bills, indicating that realizing a well-regulated payment stablecoin benefits the US dollar and global trade. Nonetheless, Representative Hill was critical of the unregulated central bank digital currency (CBDC) lashing out at the initiative, particularly when the digital currency is foreign-issued.
Representative Hill urged the United States to take action that will preserve the dollar through a regulated dollar-based stablecoin. Initially, the McHenry bill sought to grant the primary supervision and enforcement authority to the state regulators while the Federal Reserve Board (FRB) would serve as the backup enforcement authority.
Leadership Change to Influence Crypto Regulation Priorities and Pace
The pronouncement by the US lawmaker comes at a time when the US is bound to witness a change of guard in 2025 across the digital assets subcommittee, HFSC, and House of Representatives.
With all 435 seats contested between the Democratic and Republican parties, leadership change would influence the course of pending bills that target to regulate crypto-related activity,
A critical change is overlooking the HSFC, as Representative Patrick McHenry declared in December 2023, ruling out a reelection stab. The decision implies that the HFSC is set for new leadership as the current chair is exiting.
The highly divisive debates would extend scope further amid increased campaign rhetoric already witnessed as the election season intensifies.
The Republican Party has seen in its primaries declaration by former President Donald Trump he would disallow CBDC development in the country.
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