US House Financial Services members scold Fed’s Powell for stablecoin bill obstruction
The Federal Reserve is seemingly running interference with congressional efforts to regulate stablecoins, according to a letter recently sent to Fed Chairman Jerome Powell. The letter came from Chairman of the U.S. House of Representatives Financial Services Committee Patrick McHenry and subcommittee chairs French Hill and Bill Huizenga.
The legislators were objecting to two Fed letters: SR 23-7 on the Novel Activities Supervision Program and SR 23-8 titled “Supervisory Nonobjection Process for State Member Banks Seeking to Engage in Certain Activities Involving Dollar Tokens.” They wrote:
The letters, issued simultaneously, supplement a January policy statement and impose additional limitations on activities with crypto assets.
Related: Rep. Patrick McHenry blames White House for lack of urgency on stablecoin bill negotiations
According to the legislators, the Fed letters “effectively prevent banks from issuing payment stablecoins — or engaging in the payment stablecoin ecosystem” while “masked as guidance outlining a process by which these activities can be permissible.” The January policy extended restrictions placed by the Office of the Comptroller of the Currency on national banks to state banks.
In addition, the letter claimed that the Fed letters were issued without observing the notice and comment processes required by the Administrative Procedure Act.
Huge breakdown on stablecoin bill process; odds are this proceeding doesn't get done today and there's a new markup after Labor Day.
Ironically, this probably gives both sides more time for negotiations and for Chair McHenry to do direct negotiating with the White House. https://t.co/hNrQ2WF6RN
The legislation referred to by the legislators is the Clarity for
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