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 May 11, 2023 at 6:31 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Jesse Hamilton

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


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.