Rep. Davidson says 'outside chance' of stablecoin bill this year, likely next year with GOP majority

Congress has a shot at finalizing stablecoin legislation this year, says Congressman Warren Davidson, despite midterm elections in November breaking up the legislative calendar.

“There’s an outside chance we find a way to get to consensus on a stablecoin bill this year,” Davidson said at an Electronic Transaction Associations event on September 22. "There's a chance we get to yes on stablecoins this year. If we don't, it's something that I think we can get to with a Republican majority in Q1 next year."

A Republican from Ohio, Davidson sits on the House Financial Services Committee and is one of the longest-standing advocates for crypto within Congress. He was commenting on the latest development among committee leaders Maxine Waters, D-Cal., and Patrick McHenry, R-NC. 

Despite recent gains by Democrats, Republicans still seem set to win the House of Representatives, though the Senate remains uncertain. 

Draft legislation on stablecoins has begun circulating among committee members after missing its best shot at seeing a vote during the current congressional session, before the August recess.

Of the most recent version, Davidson lamented an excess of discretion given to the Federal Reserve, as well as what he considered overly broad definitions of stablecoins.

“If we could just narrowly focus on the stablecoin text and spend a couple of days hanging out together, we could probably get to language,” he said.