Today, the U.S. Congress initiates its 119th session, focusing on clarifying regulatory requirements for stablecoins. The government will explore establishing a framework to determine whether crypto firms will be overseen by the CFTC or the SEC.

Market Structure and Stablecoins

In the previous congressional session, two bills concerning stablecoins and the overall market structure emerged as key topics in the crypto realm. Representative French Hill, Chair of the Financial Services Committee, aims to advance both bills within the committee during the first 100 legislative days. Support has also been expressed by Senate Banking Committee Chair Tim Scott, House Agriculture Committee Chair Glenn Thompson, and Senate Agriculture Chair John Boozman for the passage of these bills. Typically, legislation is expected to emerge from committees before a vote takes place.

“We need to be faster.” -Marta Belcher

Most policy advocates anticipate that the stablecoin legislation will come first, as both Republican and Democratic members nearly reached a consensus last year on the matter. The primary point of contention is whether stablecoins should be backed one-to-one by the U.S. dollar.