House Financial Services Committee ranking member Maxine Waters has introduced a new proposal for stablecoin regulation, adding to ongoing legislative efforts from both Democrats and Republicans. The draft legislation, obtained by Punchbowl News, outlines federal oversight of stablecoins and sets requirements for issuers.
This development follows a separate Republican-led draft released last week, reflecting bipartisan efforts to establish clear rules for stablecoin regulation.
Maxine Waters Proposes Stablecoin Regulation Draft
Maxine Waters, the top Democrat on the House Financial Services Committee, has introduced a discussion draft aimed at stablecoin regulation under federal supervision.
The draft assigns regulatory responsibilities to the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC). It also includes a role for state regulators.
The proposal requires stablecoin issuers to maintain reserves on a one-to-one basis to ensure stability. Waters’ approach differs from previous Republican efforts, which she had previously criticized. In 2022, she opposed a Republican-led bill that would have allowed state regulators to approve stablecoin issuers without Federal Reserve involvement.
Republican Lawmakers Push Separate Stablecoin Bill
Like Maxine Waters, republicans are also advancing their own stablecoin regulation. Last week, Representative French Hill, Chair of the House Financial Services Committee, and Representative Bryan Steil introduced a draft bill.
Their proposal gives the OCC the authority to oversee federally approved nonbank stablecoin issuers instead of relying on the Federal Reserve for regulatory oversight.
The Republican-backed bill builds on past legislative discussions and could open the door for financial technology companies to enter the stablecoin market. It seeks to establish clear licensing rules for nonbank firms that issue payment stablecoins, aligning with broader GOP efforts to shape digital asset regulations.
Bipartisan Efforts Continue in the Senate
Concurrent with Maxine Waters proposal, Stablecoin regulation is also gaining attention in the Senate. Senator Bill Hagerty introduced the “Guiding and Establishing National Innovation for U.S. Stablecoins” Act.
His proposal aims to create a national framework for stablecoin oversight, focusing on risk management and compliance standards. A working group involving members from the Senate Banking Committee, House Financial Services Committee, Senate Agriculture Committee, and House Agriculture Committee has also been formed.
Lawmakers in this group are working toward a broader regulatory framework for stablecoins and other digital assets. These bills have increased amid Tether CEO Paolo Ardoino’s concerns about competition in the stablecoin market.
Stablecoin Rules a Priority Under Trump Administration
The push for stablecoin regulation comes as digital assets remain a focal point in Washington. Under President Donald Trump’s administration, both parties have introduced competing proposals, signaling that stablecoin oversight is a legislative priority.
Maxine Waters has emphasized the need for bipartisan cooperation, having previously called for a “grand bargain on stablecoins.” While past efforts to pass stablecoin legislation have stalled, ongoing discussions suggest a renewed push for regulation.
Consequently, with both Republican and Democratic lawmakers proposing different approaches, negotiations in Congress will likely continue in the months ahead.
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