Rep. Waters Advocates for Stablecoin Regulation and Expanded Federal Oversight
Proposals to regulate U.S. stablecoins have been put forth by both House Republicans and Democrats, indicating that this sector is a key legislative focus under President Donald Trump.
According to Punchbowl News, Maxine Waters, the ranking Democrat on the House Financial Services Committee, has released a proposal for stablecoin oversight involving federal agencies like the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve.
Waters’ discussion draft also addresses regulatory frameworks for state regulators. In 2022, she expressed strong concerns regarding a Republican-led House Committee bill, labeling it “deeply problematic” for permitting state regulators to approve stablecoins without Federal Reserve oversight. At that time, she argued to former Committee Chair Patrick McHenry that this method could lead to unforeseen risks.
With Rep. Waters’ proposal, it is evident that both Republican and Democratic lawmakers have introduced regulations for stablecoins since President Trump took office.
Recently, Rep. French Hill, the new Republican Chair of the House Financial Services Committee, introduced a draft bill for stablecoin regulation, which is co-sponsored by Rep. Bryan Steil. This bill would empower the OCC to approve and oversee payment stablecoin issuers.
Specifically, the OCC would be able to license and monitor nonbank stablecoin operators with federal permits, potentially allowing companies like Ripple to participate in the $220 billion market.
Rep. Hill’s bill differs from Rep. Waters’ proposal, as it places stablecoin oversight under the OCC instead of the Federal Reserve, as advocated by Waters. She previously insisted that a “grand bargain on stablecoins” was necessary for effective regulation.
In the Senate, Republican Senator Bill Hagerty has also introduced the “Guiding and Establishing National Innovation for U.S. Stablecoins” Act. Additionally, policymakers have launched a bi-cameral working group aimed at advancing crypto regulation, as announced during a press conference led by White House AI and crypto czar David Sacks.