CryptoLink - April 2024 Updates

The big news in crypto policy came out of the Senate this month. On April 17, Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) partnered once again in the digital asset space, this time introducing the Lummis-Gillibrand Payment Stablecoin Act (S. 4155). The proposed legislation would establish a regulatory framework for the payment stablecoins. Its intent is to carve out space for the growth of a safe, regulated stablecoins market in the United States that preserves U.S. dollar dominance. The bill is written with Lummis and Gillibrand’s longstanding legislative priorities in mind—namely, to address policy challenges that have plagued digital assets, including how best to enhance consumer protections, combat illicit finance and ensure the supremacy of the U.S. financial market. The senators’ proposal complements House Financial Services Committee Chairman Patrick McHenry’s (R-NC) ongoing effort to pass his stablecoins bill, the Clarity for Stablecoins Act (H.R.4766). McHenry has secured buy-in from Ranking Member Maxine Waters (D-CA), but numerous obstacles to its passage remain, including support from the White House and the lack of legislative vehicles to attach the bill onto before the end of this Congress. However, by introducing their own stablecoins bill, Lummis and Gillibrand have kickstarted the legislative process for stablecoins in the Senate, which will allow the two chambers to more easily resolve their differences.