Stablecoins bill advances in US House after tense day of debate

The House Financial Services Committee passed a comprehensive regulatory framework for stablecoins in the U.S., but along party lines after longterm bipartisan negotiations around the bill broke down.

House Financial Services Committee Chair Patrick McHenry, R-N.C., blamed the White House for the impasse, while committee Democrats argued Republicans were rushing the process.

The bill was approved by the committee by a vote of 34-16, with a handful of Democrats bucking their senior members on the panel, in addition to unanimous Republican support for the legislation. The vote was similar to a vote yesterday in the panel to advance the crypto market regulatory overhaul.

Democrats protested the vote on the bill earlier in the day through a series of procedural maneuvers to slow down proceedings, while saying that Republicans could wait to vote on the bill until September or later. A bipartisan compromise on the bill looked likely as recently as earlier this week. It remains to be seen whether talks could be revived to give the bill a substantial chance of becoming law.

A separate crypto-related measure around self-custody also advanced past the panel on a party-line vote, indicating it is unlikely to advance into law due to the split control of Congress.