According to CoinDesk, US Senator Cynthia Lummis (R-Wyo.) has expressed optimism that stablecoin legislation will advance this year, possibly even in the first half of the calendar year. Lummis, a strong advocate for crypto policy in the Senate, revealed that negotiations are ongoing every day between Democrats and Republicans, as well as between the Senate and the House of Representatives. She also mentioned that the Federal Reserve has provided 'good technical assistance feedback' on the matter.
Stablecoins, such as Tether's USDT and Circle Internet Financial's USDC, are crucial to the crypto markets as they provide a stable means of transacting in more volatile assets. The market cap of stablecoins is currently around $136 billion. While some legislative efforts have come close to completion in recent years, a key sticking point has been the role of the Federal Reserve or states in overseeing issuers. Lummis, a member of the Senate Banking Committee, acknowledged that the current stablecoin debate is 'a pretty dynamic discussion' but believes there is light at the end of the tunnel.
Recent developments in the crypto industry, such as the US Securities and Exchange Commission's approval of spot bitcoin exchange-traded funds (ETFs), have helped make a case for legislation. Lummis noted that the involvement of major financial institutions like Invesco, Fidelity, and BlackRock in the bitcoin ETF space has increased consumer confidence in the maturity of the asset class and its readiness for mainstream adoption.