Stablecoins and Federal Regulation Under Debate
California Representative Maxine Waters, a champion on financial regulation, has introduced a new legislative draft that looks to place stricter oversight on stablecoins. In her legislation, Waters seeks federal regulation of stablecoin issuers, improvement in closing regulatory loopholes, and ensuring financial stability through one-to-one reserve requirements.
According to Waters, this draft hitches on three years of bipartisan talks, trying to prohibit these stablecoin firms from bypassing U.S. regulations by seeking to operate in other countries. Further, the proposal prohibits those persons convicted of fraud from being in key positions within stablecoin firms.
Federal Oversight of Stablecoin Issuers
The new proposal assigns oversight as it deems fit for major federal agencies such as:
✅ The Federal Reserve – Regulatory authority over stablecoin issuers
✅ Office of the Comptroller of the Currency (OCC) – Superintendence over adherence to banking regulations
✅ Federal Deposit Insurance Corporation (FDIC) – Protection of financial security and consumers
Unlike earlier Republican attempts, Waters’ bill does not give away authority to state supervisors for approval of stablecoin issuers without the requirement of Federal Reserve engagement, which continues to be a contentious aspect among legislators.
White House’s Crypto Shift: Ripple CEO Joins as Advisor
As Waters calls for stricter regulations, the White House has brought Ripple CEO Brad Garlinghouse on board as a crypto advisor. This indicates a possible change in the administration’s stance as Garlinghouse is pushing for clear but less stringent regulations.
📌 Key Takeaways:
- Waters’ proposal focuses on control and stability through strict oversight.
- The Trump administration’s appointment of Garlinghouse shows a more collaborative approach with the crypto industry.
Stablecoins: A Priority Under Trump’s Administration
In Washington, both parties have taken it to a point where there are competing proposals as both sides continue to push forward. While Waters is asking for a “grand bargain on stablecoins”, negotiation in Congress remains in place.
Since Republicans and Democrats differ with one another concerning regulatory approaches, the future of stablecoin legislation remains uncertain. However, due to growing political attention, new regulations might surface sooner than people think.
📢 What Do You Think?
💬 What do you think about the proposed stablecoin regulations?
Should the government enforce stricter rules or work alongside the crypto industry?
Also Check:
- Robert Kiyosaki’s 2025 Market Crash Warning: Is This the Right Time to Invest?
- $TRUMP Coin Frenzy: $100M in Fees—Who Really Profited?
- Why Is XRP Falling Today? Trump’s Tariffs and Market Volatility Explained
- Trump’s 25% Tariff Announcement Sparks Crypto Market Volatility
- Zoo Airdrop Listing Date & Tokenomics Update: Everything You Need to Know!
- $TST Token Soars 4700% Following Binance Founder CZ’s Tweet
- Central African Republic’s Crypto $CAR: Scam or Innovation?