Stablecoins, the heart of the digital economy, are finally getting the attention that they deserve as a bill has been drafted and awaiting a response from the US Senate. But according to the recent information, the bill had some core issues that still need to be sorted out; hence the approval date has been extended to September because of the August break that the Senate has.
Debate on Stablecoin Legislation
Upon further research, it was found that a long heated debate is in effect with the house of representatives and other involved parties about the future of stablecoins. Many states are yet to announce the nature of their affiliation with the stablecoins and how they wish to proceed further with the digital entities. It was reported that the state of Washington is especially struggling to find some ground to have stablecoin legislations issued within the state.
This is because of the recent collapse that the crypto market and lenders took. The risk parameter is through the roof as previously people had to face issues such as withdrawal freezing and unsecured creditors; that is why they are taking each and every angle into account before passing such a bill, but nonetheless, a draft is in effect.
The people who were in charge of developing the draft for the stablecoin bill for the Wednesday hearing couldn’t complete the draft on time; hence the whole thing has been subjected to such a gruesome wait and is pending.
They have missed these deadlines, and on top of everything else, the core issues that the bill initially had couldn’t also be resolved; hence the whole thing is in for a revision. These core issues revolve around custodial wallets, and standards are still applicable in this whole charade.
That is why the whole thing has been pushed all the way to September, when Congress shall be back from its summer break, and the draft issuers would have fixed the mistakes within the bill pertaining to a formal submission before the committee so that a proper hearing could be held.