Congressman Patrick McHenry, the ranking member on the House Financial Services Committee, has issued a statement regarding President’s Working Group on Financial Markets (PWG) report on stablecoins. McHenry has long been supportive of innovation in financial services and recently he, along with Congressmen Tom Emmer and Warren Davidson, sent a letter to Treasury Secretary Janet Yellen asking how the Treasury categorizes stablecoins and the regulatory implications that flow from its classification. Earlier in October, McHenry sent a letter to SEC Chairman Gary Gensler requesting more clarifications on the regulatory approach to stablecoins as well.
Today, McHenry shared his concern that innovation regarding stablecoins may be squelched as some people simply do not understand the technology:
“The Biden Administration seems determined to stop innovation in its tracks—harming American consumers and our international competitiveness. This report lays bare the jurisdictional challenges our regulators face when it comes to emerging financial innovations, like stablecoins. The President’s Working Group, led by Treasury, has taken a first step by putting the ball in Congress’ court. Unfortunately, Congressional Democrats and the Administration appear committed to blocking technology they don’t understand. Policymakers must thoroughly understand the potential usability and reliability of stablecoins and the benefits provided, while fully examining possible risks. I look forward to working with my colleagues to make the most of this opportunity to responsibly advance innovation.”
It is not clear how soon any legislation regarding stablecoins that may garner sufficient support to become law will enter the halls of Congress.