Stablecoin bill moves forward in House

The House Financial Services Committee yesterday voted to advance out of committee legislation introduced by Chairman Patrick McHenry (R-NC) that would establish a regulatory framework for stablecoins. The bill, H.R. 4766, would allow state banking regulators to approve and supervise nonbank stablecoin issuers. ABA and other banking and credit union associations have said the model proposed in the legislation is insufficient to provide the strong regulatory oversight needed to ensure effective consumer protection, financial stability and a level regulatory playing field. The trade associations instead urged that stablecoin issuers be subject to at least the same form of supervision from a federal regulator as state-chartered banks and credit unions.