Maxine Waters says legislators ‘very close’ to a deal on stablecoins: Report

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United States lawmakers are reportedly closing in on passing a long-awaited stablecoin bill.

“We’re working on stablecoin; we’re getting very close,” Representative Maxine Waters reportedly told Politico on Feb. 7.

“We’re very, very close — very close,” she stressed.

Passing a stablecoin law has been a topic of discussion between Democrats and Republicans in recent months. Much debate has revolved around how the Federal Reserve would oversee the stablecoin arena and whether it would write rules regarding the issuance of stablecoins.

“That’s what’s important to me: Our central bank should have the power of oversight, and should have the ability to be at the head of this,” Waters said.

“We worked something out with the feds, and I think it’s OK.”

Waters has been negotiating the matter with House Financial Services Committee Chair Patrick McHenry for over 20 months.

The Clarity for Payment Stablecoins Act is one of the most notable stablecoin bills that has been introduced into Congress, which was sponsored by McHenry.

Related: Stablecoins pose lower risk than bank deposits, says ex-Fed policy analyst

It follows a Feb. 6 hearing held by Janet Yellen, United States Secretary of the Treasury, who told lawmakers that Congress needs to take imminent action on cryptocurrency regulation in order to prevent or at least mitigate risks to investors and the broader financial system.

The Treasury Secretary called regulation “critical” for certain areas, such as protecting wallet holders and overseeing stablecoin issuers.

“We’ve identified some gaps where, for consumer investor protection and to address financial stability risk, it would be useful for Congress to take action to fill those gaps.”

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