A few years after Crypto Insiders desperately tried to attract the attention of the US Congress, digital witnesses at the latest Congressional hearing on Stubcoin include senior BNY executives and lawyers at Davis Spoke & Wardwell, who spent a career representing Wall Street.
This session will help representatives of the traditional financial system step into scale and tilt their balance towards stubcoin regulation as Congressional momentum rises towards supporting cryptographic law. At a House Financial Services Committee hearing Tuesday, lawyer Randy Ginn argued that safeguards imposed by stable transparency and accountability for the better ledger economics law, known as stable law, should put the issuers of these digital tokens under similar protections in banks.
“As a licensed Stablecoin issuer, as envisaged by stable law, the stable amount of payment should be the safest, so if there are no material amounts other than stable debt, the most common on-street banks’ testimony, if there are no liabilities in material amounts other than stable liabilities.
And just below the witness table from him was Caroline Butler, the global head of BNY digital assets, was New York Democrat Richie Torres, who is called the “ultimate representation of the traditional financial system.” Butler said her banks already provide important services to issuers such as Circle (USDC), and the sector needs clarity from the US government.
“What’s very important to the ecosystem is to ensure that the ecosystem has the implicit trust and trust that client assets are actually protected and protected according to federal law and regulations,” she told lawmakers.
“We want to be able to participate in the examples of new options and mechanisms (stubcoin and blockchain technology) so that we can continue to meet the evolving needs of our markets and our clients,” Butler said.
Though sentiments from supporters of Stablecoin’s regulations reflected what was often said in the past, the source of that sentiment comes more often from the more traditional financial corners. Confluence was significantly strengthened in Washington as political muscles in the crypto industry (supporting the assistance provided to congressional campaigns from crypto companies) was promoted, resulting in a democratic crowd joining Republicans and overturning the governance of internal revenue services. (The House of Representatives is scheduled to vote on whether or not to join the Senate on Tuesday.)
Therefore, Crypto has more friends to make the law more possible. Wall Street is there.
Committee ranking Democrat Maxine Waters and other parties have urged the Stablecoin debate to return to the bill she and former Republican panel chair Patrick McHenry worked together in the aisle. Rejecting this current effort, she insisted that she “needs to go back to the drawings of stablecoins.”
But California Democrat Sam Ricardo noted that he has given up resistance to action in several ways, keeping in mind the Congressional transition. “We have moved from discussing whether to regulate or not to regulate,” he said.
Meanwhile, the Senate has further revised Senator Bill Hagerty’s similar Stubcoin Act and the Estab Coin Act of the National Innovation (Genius Act) to markup hearing this week at the Senate Banking Committee.
The committee considered laws banning the creation of the US Central Bank’s digital currency (CBDCS) on Tuesday while still messing up its approach to stubcoin. Republicans are running a lively campaign against the idea, and are trying to further strengthen President Donald Trump’s president’s decline to form such a digital dollar. Though US CBDC considerations have never reached major advances in the previous administration, GOP lawmakers have suggested that the federal government will use it as a tool to spy on citizens, despite comments from officials such as federal government chair Jerome Powell.
Update (March 11, 2025, 21:40 UTC): Adding a rebrand for BNY.
