A New Initiative Concerning Cryptocurrencies Presented in the US! Will the Law Pass This Time?

The US Senate is taking another step towards stablecoin regulation with the introduction of a new bill by Senator Bill Hagerty.

Legislation aims to create a regulatory framework for the issuance of dollar-backed stablecoins and represents a new step in the new Congress to bring oversight to the growing digital asset sector.

According to a reliable source, Hagerty's proposal titled the National Innovation Direction and Formation Act for US Stablecoins aims to define payment stablecoins and create a structured approach to their issuance. The proposal designates the FED as the primary regulator for large stablecoins issued by banks, while the Currency Comptroller's Office (OCC) will oversee non-bank issuers with assets exceeding $10 billion.

State regulators will continue to oversee smaller issuers and larger firms will have the option to request a federal waiver.

This initiative represents a significant shift from previous stablecoin efforts in 2024, which faced obstacles under the leadership of former Senate Banking Committee Chairman Sherrod Brown. Brown's loss in November opened the way for the renewal of bipartisan negotiations. This time, Hagerty's bill received support from Senate Banking Committee Chairman Tim Scott and Senator Cynthia Lummis, who chairs the panel's subcommittee on digital assets. Lummis stated that she is working to bring this bill to the president's desk.

Despite this momentum, the success of the bill remains uncertain due to ongoing bipartisan negotiations. The main challenge encountered in previous discussions was determining the balance of regulatory power between federal and state officials. It is still unclear whether Hagerty's revised approach will gain the support of Democrats, especially considering the softer regulatory stance.

The House of Representatives had previously passed a stablecoin oversight bill in the last congressional session, but it stalled in the Senate.