The House Financial Services Committee yesterday voted to advance five banking-related bills, ranging from stablecoins to de novo bank formation. The American Bankers Association submitted statements for the record on four of the bills ahead of the hearing.
One bill to clear the committee was the Stablecoin Transparency and Accountability for a Better Ledger Economy Act, or STABLE Act. The legislation would create a regulatory framework for payment stablecoins. ABA’s comments highlighted the principles that should guide any stablecoin regulation. The bill passed 32-17.
Other legislation advanced by the committee:
- The Promoting New Bank Formation Act, which would establish a three-year phase-in period for new banks to comply with federal capital standards, among other changes. The vote was 28-21. ABA supported the bill.
- The Anti-CBDC Surveillance State Act, which would prohibit the Federal Reserve Banks from issuing a retail central bank digital currency. The vote was 27-22. ABA supported the bill.
- The 1071 Repeal to Protect Small Business Lending Act, which would repeal the Consumer Financial Protection Bureau’s small-business lending data collection rule. The vote was 27-22. ABA supported the resolution.
- The Financial Technology Protection Act, which would establish a government working group to help combat terrorism and illicit financing on digital platforms. The vote was unanimous.
In a statement, ABA President and CEO Rob Nichols applauded the votes to advance the latter four bills. As for the STABLE Act, he said a durable regulatory framework for payment stablecoin must balance the potential for improving a customer’s payment experience with the need to limit negative economic consequences, promote financial stability and guard against consumer protection risks.
“Because payment stablecoin has the potential to significantly disintermediate core commercial bank activity like deposit taking, we are keenly focused on ensuring that any newly established regulatory framework mitigates that risk,” Nichols said. “Several provisions in the bill strive to do that, and we thank the committee for addressing these concerns and for making several other positive changes that reflect the perspective of America’s banks and their customers. We look forward to continued collaboration with lawmakers on these issues going forward.”
