Rep. McHenry says Stablecoin regulation requires a broader tool

US legislator Rep. McHenry says stablecoin legislation is a priority and negotiations have been ongoing for the past 23 months. The legislator also spoke about the broader tool of the bill in the Senate and recent changes in pro-cryptography legislation. Digital asset regulation took center stage this month with the passage of industry regulations and changes by several U.S. lawmakers. Events like the former president

Donald Trump accepting Bitcoin donations and anticipated bipartisan support have sparked broader market speculation.

A new Stablecoin vehicle is needed, says lawmaker

Speaking on recent events in Congress, Rep. McHenry indicated that efforts to pass stablecoin legislation in the Senate are focused on the tool of pushing the bill. In addition to the vehicle, the law needs a deadline and the possibility of its entry into force.

Although most commentators are skeptical about the bill’s chances in the Senate, Rep. McHenry believes that recent successes, such as the passage of the Market Structure Act and Democratic support in the vote, indicate bipartisan support. When asked if he thought a stablecoin bill could stand on its own in the upper house, he replied in the negative.

“I actually think we need a bigger vehicle. What we haven’t seen in the Senate is them passing a separate Senate-wide financial services bill since House Bill 2155, and we need a Senate Majority Leader to prioritize this policy; market structure, stablecoins and until then we are just going to create atmosphere and pressure in the best way possible.”

Market structure bill in the Senate

Act on financial innovations and technologies for the 21st century (MATCHING 21) was passed in the House by lawmakers of both parties, but its fate in the Senate remains uncertain. Representative McHenry stated that FIT 21 creates a framework for the ownership of digital assets, giving the ecosystem a regulatory form.

Described as a landmark bill on consumer protection and capital flows, its passage by a two-thirds majority is an important statement, McHenry added.

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