tl;dr
The U.S. is at risk of falling behind in stablecoin regulation at the federal level, as other jurisdictions worldwide move towards establishing clearer rules. This concern was highlighted by Circle’s Vice President, Yam Ki Chan, who emphasized the lack of a national regulatory framework in the U.S. ...
U.S. lagging in stablecoin regulation at federal level amid global regulatory shifts
Fragmented landscape of stablecoin regulation in the U.S. raises compliance costs and hampers innovation
Bipartisan stablecoin bill aims to create regulatory framework, but faces challenges in legislative process and political negotiations
Upcoming U.S. election seen as an opportunity to reprioritize and reshape national conversation around crypto regulations
The U.S. is at risk of falling behind in stablecoin regulation at the federal level, as other jurisdictions worldwide move towards establishing clearer rules. This concern was highlighted by Circle’s Vice President, Yam Ki Chan, who emphasized the lack of a national regulatory framework in the U.S. In contrast, other regions like the EU and Hong Kong have started implementing unified approaches. In the U.S., many states regulate stablecoin issuers under existing money transmission laws, leading to a fragmented landscape. The U.S. House Financial Services Committee passed a bipartisan stablecoin bill in July 2023, aiming to create a regulatory framework addressing consumer protection and financial stability. However, the bill still needs to navigate further legislative processes. Chan noted that U.S. politics involves negotiating and dealing with unrelated issues, potentially complicating the bill's progress. Despite this, there are indications of a shift in the political consciousness surrounding crypto, with Sen. Chuck Schumer vowing to pass crypto legislation by the end of the year. Chan emphasized the importance of collaboration between private companies and regulators, stressing the need to balance innovation with adherence to rules. The U.S. risks lagging in stablecoin regulation at the federal level amid competing jurisdictions worldwide, even as the Republican and Democrat parties work to establish clearer rules for the sector.