The House Financial Services Committee advanced legislation to regulate stablecoins after an arduous markup that stretched more than 13 hours on Wednesday.
Democrats pounded Republicans with a steady toll of amendments to the STABLE Act that we wrote about in the PM edition. Ultimately, none of those amendments were adopted.
And despite enormous opposition from some of the panel’s senior Democrats, six of of their members joined Republicans to advance the measure towards the floor. Those Democrats were Reps. Jim Himes (Conn.), Gregory Meeks (N.Y.), Janelle Bynum (Ore.) and bill co-sponsors Ritchie Torres (N.Y.), Sam Liccardo (Calif.) and Josh Gottheimer (N.J.).
The markup took a brief, strange turn shortly after Republican Rep. Warren Davidson (Ohio) told us he had his own amendments to the STABLE Act. Republicans who’d complained hours earlier about Democrats’ time-burning tactics began to gently filibuster, waxing about the general benefits of innovation while Davidson, Hill and others negotiated in the committee’s back room.
Ultimately, Davidson brought up two amendments. One hinged on the ability of state regulators to supervise “commodity-backed” stablecoins, pointing to a company approved by the New York Department of Financial Services to offer that product back in 2019.
Ranking Member Maxine Waters (D-Calif.) expressed some interest in Davidson’s first amendment. Chair Rep. French Hill (R-Ark.) had reservations, gesturing to concerns that had apparently been expressed by the House Agriculture Committee. Davidson acknowledged them and withdrew the amendment.
The second Davidson amendment would implement changes to the self-custody of stablecoins. This time, Hill said he was opposed, arguing the policy was a better fit for market structure reform.
Later in the hearing, Davidson told Waters that Hill didn’t want self-custody changes in the legislation because “he fears that he will lose support from Democrats.” Hill didn’t comment on the suggestion.
So, yeah, kind of a weird day for the committee. Davidson’s self-custody amendment failed 1-47.
Otherwise:
The panel also advanced House Majority Whip Tom Emmer’s Anti-CBDC Surveillance State Act, Rep. Roger Williams’ (R-Texas) 1071 Repeal to Protect Small Business Lending Act and Rep. Andy Barr’s (R-Ky.) Promoting New Bank Formation Act.
Correction: A previous version of this story misidentified the sponsor of the 1071 Repeal to Protect Small Business Lending Act.
