(Reuters) -The U.S. House of Representatives appeared poised to pass key crypto legislation on Thursday, including the creation of a regulatory framework for U.S.-dollar-pegged cryptocurrency tokens known as stablecoins, after two days of fraught negotiations.
House lawmakers in Washington were due to convene on Thursday afternoon to consider passing the stablecoin bill and another that would develop a regulatory framework for cryptocurrencies more broadly.
The stablecoin measure, which has already been agreed to in the Senate, is expected to pass and move on to be signed by President Donald Trump as soon as Friday.
That would be a major victory for the digital assets industry, marking the first major crypto law enacted in the United States and paving the way for greater integration of crypto into traditional financial markets.
Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds.
They have gained much momentum in recent years, offering faster and cheaper transaction costs than moving money through a bank. Their use has grown rapidly in recent years, and proponents say they could be used to send payments instantly.
The week’s negotiations to consider the legislation – dubbed “crypto week” by Republican lawmakers – ran into unexpected hurdles after some conservative hold-outs voted against considering the measures. Trump huddled with skeptics at the White House on Tuesday to try to save the initiative.
Even after Trump announced an agreement, it still took about nine hours for the bills to clear key procedural hurdles late on Wednesday as private talks continued.
In negotiations that went late into Wednesday evening, lawmakers decided to include language to prohibit the United States from issuing a central bank digital currency in an unrelated defense spending bill as a compromise to conservatives who strongly supported the ban.
The anti-central bank currency bill had become a sticking point for conservative Republicans.
While central banks in some nations have explored issuing their own digital currencies, the topic has been met with quick resistance in the United States from conservative Republicans, who argue it could allow the government to monitor Americans’ spending.
The Fed has studied the issue, but Chairman Jerome Powell has said that the central bank would never pursue one absent explicit approval from Congress.
House lawmakers have said they are aiming to vote on all three crypto measures later in the day.
When asked if he expects the crypto bills to pass on Thursday, House Speaker Mike Johnson told reporters: “I do.”
(Reporting by Chris Prentice and David Morgan; Editing by Pete Schroeder and Mark Porter)
Comments