Senator Sherrod Brown (D-H), a noted crypto-skeptic, expressed openness to stablecoin legislation amidst news of a bipartisan bill proposed by Representatives Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY), a Tuesday report from Bloomberg revealed.
When asked by the news outlet if he would advance stablecoin legislation tethered to a bill focused on reducing compensation for failed lenders’ executives and authorizing banks to conduct with cannabis businesses, Brown reportedly answered “That’s the goal.”
Senator Sherrod Brown Willing To Advance Stablecoin Legislation
For context, U.S. lawmakers often attempt to bundle issues into a bill in hopes of generating support for legislation that may otherwise fail.
Brown cautioned that any compromise on stablecoins “would have to address his concerns to support it,” however.
Representatives Kirsten Gillibrand and Cynthia Lummis Introduce New Bill
Shortly after news broke of Brown’s willingness to support stablecoin legislation, Representatives Lummis and Gillibrand introduced the aptly named “Lummis-Gillibrand Payment Stablecoin Act of 2024.”
According to a statement from Gillibrand, the bipartisan bill would create federal and state regulatory regimes for stablecoin issuers that preserve the dual banking system, ensure stablecoin issuers maintain one-to-one reserves while prohibiting unbacked algorithmic stablecoins, and prevent illicit use of stablecoins by issuers and users.
I’m proud to join @SenLummis to introduce the Payment Stablecoin Act.
Passing a regulatory framework for stablecoins is critical to protecting consumers, promoting responsible innovation, and cracking down on money laundering and illicit finance. https://t.co/UP9pk0uQkt pic.twitter.com/lIqA3rwQXN
— Sen. Kirsten Gillibrand (@gillibrandny) April 17, 2024
The senators introduced the “Lummis-Gillibrand Responsible Financial Innovation Act” in 2022 and reintroduced it last year in hopes of creating stricter digital asset regulations.
“Passing a regulatory framework for stablecoins is absolutely critical to maintaining the U.S. dollar’s dominance, promoting responsible innovation, protecting consumers and cracking down on money laundering and illicit finance,” said Senator Gillibrand. “The bipartisan Lummis-Gillibrand Payment Stablecoin Act preserves the dual banking system and gives both federal and state agencies roles in chartering and enforcement.”
Elizabeth Warren Pushes Back Against Stablecoin Legislation
Passing stablecoin legislation has been a hot topic on Capitol Hill in recent months. House Financial Services Committee Chairman Patrick McHenry (R-NC) and Congresswoman Maxine Waters (D-CA) reportedly pitched an unreleased proposal to Senate Majority Leader Senator Chuck Schumer (D-NY) last week tying stablecoin reform to the upcoming funding reauthorization of the Federal Aviation Administration (FAA).
Senator Elizabeth Warren (D-MA) has resisted her colleagues’ efforts, however, claiming that advancing such legislation without effective anti-money laundering laws could expose a number of security risks.
For years, Warren has been trying to pass the “Digital Assets Anti-Money Laundering Act” (DAAMLA), which would put such stringent anti-money laundering laws in the crypto sector.
“We need a regulatory framework that will put the rules for Anti-Money Laundering in place so that we do not have more opportunities for Iran and terrorists and drug lords and human traffickers to make more money,” Warren said during a recent hearing.
With Brown seemingly on board with approving a stablecoin bill, it may only be a matter of time before new stablecoin legislation is passed.
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