This week, the crypto news in Congress is that there is no news. Right now, legislators are slowing on crypto legislation as Congress winds down for an August recess. Two bills of note — both aimed at stablecoins — will be taking a backseat to other legislative priorities. In the meantime, though, one Republican lawmaker will be able to use the delay to find bipartisan support for his bill.
Summer time means summer vacation for some Congress members. Between Aug. 6 and Sept. 6, members of the Senate will go into recess and return to their home states. The recess is not a vacation, however; the break allows Senators to travel around and speak with constituents about hot-button issues. This helps lawmakers get a better idea of what policies to pursue when back in session.
But, while the recess does help Congresspeople connect with their home bases of support, it also puts a long pause on bills working their way up the ladder. In the crypto world, there are two bills investors were hoping to see taken to a vote. Both will now have wait until at least September.
One of these bills, a bipartisan bill by Rep. Maxine Waters and Rep. Patrick McHenry, was hoping to reach a vote before the break. This bill would force stablecoin providers to keep reserves at a 1-to-1 ratio with their coins. The second bill, introduced by Republican Sen. Pat Toomey, would force stablecoin providers to fully disclose the assets that comprise their reserves.
Toomey’s bill will benefit from the recess, however; he is seeking bipartisan support for the bill so that it stands a better chance of passing. Today, Democrat Sen. Sherrod Brown confirmed he is in talks with Toomey about the bill. That signals potential bipartisanship come September.
Stablecoin Bill Crypto News Shows Careful Attitude Across U.S. Government
This crypto news today shows Congress members reluctant to try and push anything crypto-related through too quickly. Indeed, it seems that things are very touch-and-go across the Capital regarding digital assets. There’s a lot to figure out and legislation will need to wait until various efforts to analyze the industry bring forth suggestions.
President Joe Biden’s executive order, for example, stands to provide some much-needed clarity on the crypto industry for coming legislation. The order has created several study groups that will research various areas of the crypto market and report back to lawmakers. Waiting until September brings lawmakers closer to the presentation of these groups’ findings; this only stands to benefit infrastructure decision-making.
The U.S. Securities & Exchange Commission (SEC) is also in the midst of a handful of investigations and lawsuits that could help firm up precedent for legislation. Most significant is the Ripple (XRP-USD) case, which has big implications over how lawmakers and regulators classify cryptos. With a decision expected any day now, waiting until after the recess to address crypto legislation means lawmakers can go into the vote with a better idea of legal precedents. The SEC also just opened an investigation into Coinbase (NASDAQ:COIN) for a similar charge.
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
