Digital Chamber Applauds New Stablecoin Bill Amid SEC’s Crypto Crackdown

The Chamber of Digital Commerce praised Sen. Hagerty for leading the Senate version of the Clarity for Payment Stablecoins Act.

This Act will provide the necessary clarity so innovative, USD-backed tokens can thrive in security and predictability, benefiting innovators and consumers.

Chamber Applauds Hagerty for Stablecoin Bill – Stablecoin Market Reaches $173B

The Chamber of Digital Commerce commended Sen. Hagerty for introducing the Senate version of the Clarity for Payment Stablecoins Act. This Act aims to provide the regulatory clarity needed for USD-backed coins to grow securely, benefiting innovators and consumers.

This is all happening amidst SEC crackdown with crypto companies. Just a few days ago Crypto Com filed a lawsuit against the US Securities and Exchange Commission.

The main reason is the fact that he SEC is broadening its jurisdiction to classify most crypto asset transactions as securities, but it is making exceptions for Bitcoin and Ethereum.

As the stablecoin market reached a $173.35 billion market capitalization, its further development has been hampered by the lack of clarity around its regulation.

The Chamber of Digital Commerce, a US advocacy group, represents the interests of the blockchain, bitcoin, digital currency, and digital assets industry.

The Crypto Council for Innovation, the premier global alliance working to advance innovation and inclusive regulation, also praised Hagerty’s move.

🚨 stablecoin bill drop.

CCI appreciates @SenatorHagerty's leadership with today's release of this bill. CCI continues to be fully engaged on the Hill to best promote responsible stablecoin innovation to ensure US leadership. https://t.co/tJldU6AN8q pic.twitter.com/QFLIgMBG3f

— Crypto Council for Innovation (@crypto_council) October 10, 2024

It was a direction in which this kind of regulation became an urgent need. From Federal Reserve Chair Powell to Treasury Secretary Yellen, everyone pressed upon Congress for clear guidelines. One can view delays in action as disruptive to progress.

Senator Hagerty’s bill represents the next step in that process and includes regulatory clarity the market needs. According to Cody Carbone, President of The Digital Chamber, further delay is no longer tolerable; the moment is urgent.

While this proposal differs appreciably from the House companion bill introduced by House Financial Services Committee Chairman Patrick McHenry, they share an essential feature: both would permit state regulation of these coins issuers.

This necessary flexibility allows for fostering innovations even as regulatory consistency and consumer protection go further. It clarifies for issuers that they can operate under either a federal or state regulatory regime and will enable the growth of stablecoins within a sound regulatory framework.

Hagerty’s Proposal Fuels Crypto Debate, Signals GOP Policy

Hagerty’s proposal adds a new layer to the possible crypto debate that will heat up after the November elections. As House Republicans work to push through their plan and a broader piece of legislation to remake SEC and CFTC crypto oversight, Hagerty’s efforts mean it will gain more steam.

He sits on the Senate Banking Committee, which gives him leverage in shaping digital asset regulation. His bill will be one of the hot points going forward.

Moreover, the Hagerty bill may provide insight into the type of stablecoin policies that Republicans would emphasize during a second Trump presidency. The winning odds are turning in favor of the Republican Presidential Candidate. Many Polymarket bettors have tipped the 78-year-old politician over his Democrat counterpart, Kamala Harris.

As background reading, you may want to examine some of the recent papers on token regulation and the roles of the SEC and CFTC regarding digital assets. The Digital Chamber’s crypto regulatory developments reports may be worth reading.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.