This week, the crypto news in Congress is that there is no news. Right now, lawmakers are slowing down crypto legislation as Congress wraps up for a break in August. Two notable bills – both aimed at stablecoins – will take a back seat to other legislative priorities. In the meantime, however, a Republican lawmaker can use the delay to find bipartisan support for his bill.
DST means summer vacation for some members of Congress. Between August 6 and September 6, members of the Senate will go on vacation and return to their home countries. Recess is not vacation, however; the break allows senators to move around and discuss burning issues with their constituents. This helps lawmakers have a better idea of what policies to pursue once back in session.
But, while the suspension helps members of Congress connect with their home support bases, it also puts a long pause on rising bills. In the crypto world, there are two bills that investors have been hoping to see put to a vote. Both will now have to wait until at least September.
One of those bills, a bipartisan bill from Rep. Maxine Waters and Rep. Patrick McHenry, hoped to get a vote before the break. This bill would require stablecoin providers to maintain reserves at a 1-to-1 ratio with their coins. The second bill, introduced by Republican Senator Pat Toomey, would require stablecoin providers to fully disclose the assets that make up their reserves.
Toomey’s bill will benefit from the suspension, however; he is seeking bipartisan support for the bill so that it has a better chance of passing. Today, Democratic Senator Sherrod Brown confirmed he was in talks with Toomey about the bill. This signals potential bipartisanship in September.
Stablecoin Bill Crypto News Shows Cautious Attitude in US Government
This crypto news today shows that members of Congress are reluctant to try to push through anything crypto too quickly. Indeed, it appears that things are very hazy in the capital when it comes to digital assets. There is a lot to figure out and legislation will have to wait until various industry analysis efforts come up with suggestions.
President Joe Biden’s executive order, for example, is expected to provide much-needed clarity on the crypto industry for upcoming legislation. The order has created several study groups that will study various areas of the crypto market and report back to lawmakers. Waiting until September brings lawmakers closer to presenting findings from these groups; it only benefits infrastructure decision-making.
The U.S. Securities & Exchange Commission (SEC) is also in the midst of a handful of investigations and lawsuits that could help set a precedent for the legislation. The most significant is the Ripple (XRP-USD), which has big implications for how lawmakers and regulators classify cryptos. With a decision expected any day, waiting until after the break to address crypto legislation means lawmakers can vote with a better sense of legal precedents. The SEC has also just opened an investigation into Coinbase (NASDAQ:PIECE OF MONEY) for a similar amount.
As of the date of publication, Brenden Rearick has not held (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.