US Senate Republican Seeking Bipartisan Support for Stablecoin Oversight Effort

The ranking Republican on the Senate Banking Committee is talking to Democrats, including Chairman Sherrod Brown, to gain broader support.

AccessTimeIconJul 28, 2022 at 4:18 p.m. UTC
Updated Jul 28, 2022 at 6:40 p.m. UTC

Jesse Hamilton is CoinDesk's deputy managing editor for global policy and regulation. He doesn't hold any crypto.

Sen. Pat Toomey (R-Pa.), the ranking Republican on the U.S. Senate Banking Committee, is talking to Democrats to make his stablecoin oversight bill a bipartisan effort. Committee Chairman Sherrod Brown (D-Ohio) confirmed Thursday he’s been involved in the discussions.

"The first place where we should be able to find common ground, and I actually think in many cases are close, is to chart a path forward for clear and sensible regulations on stablecoins," Toomey said at a Thursday committee hearing, mentioning his own push for oversight of the tokens.

"I'm in discussion with several members to make this proposal a bipartisan one," said Toomey, who called his proposal a “starting point.”

Brown spoke briefly Thursday after Toomey’s mention of the stablecoin proposal.

“Senator Toomey and I have talked about this,” Brown said, noting that the two have “a different view generally” over the intensity of regulation needed for stablecoins. However, he added that “we want to get to that. We want the regulators to go as far as they can go.”

Stablecoins are designed to maintain steady value thanks to being pegged to an assets such as the U.S. dollar. The largest stablecoins – Tether’s USDT and Circle Internet Financial’s USDC, both backed by U.S. dollars – allow investors to reliably trade in and out of more volatile digital assets.

Toomey’s proposal pushes for full disclosure of the reserves that back stablecoins. The Office of the Comptroller of the Currency would regulate stablecoin issuers.

Bipartisan negotiation in the House of Representatives Financial Services Committee about a similar stablecoin regulation bill has been delayed until after the August congressional recess.

Also at the Thursday hearing, Sen. Elizabeth Warren (D-Mass.) said she's poised to release a bill "to regulate the crypto market and stamp out the worst scams." In March, she introduced a bill addressing sanctions compliance in crypto.

UPDATE (July 28 16:45 UTC) – Corrects that the hearing where Toomey spoke took place on Thursday.

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Jesse Hamilton is CoinDesk's deputy managing editor for global policy and regulation. He doesn't hold any crypto.

CoinDesk - Unknown

Jesse Hamilton is CoinDesk's deputy managing editor for global policy and regulation. He doesn't hold any crypto.

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