Senator attaches stablecoin legislation to a marijuana bill in hopes of pushing it through
Sherrod Brown, the US Senate Banking Committee Chair, disclosed plans to combine a significant stablecoin bill with marijuana business legislation. He views it as a chance to drum up support for the stablecoin initiative without giving it a lot of exposure.
Senator Brown reportedly expressed his openness to passing stablecoin legislation in Congress. According to an April 16 Bloomberg report, the senator’s proposals include combining the stablecoin bill with bills permitting banks to conduct business with cannabis firms and enforcing clawbacks for failed financial institutions executives.
Lawmakers in both chambers haven’t successfully advanced bills to address regulatory issues with stablecoins. Despite support from industry leaders and many in Congress, lawmakers have yet to reach a compromise.
In February, Maxine Waters, Ranking Member of the House Financial Services Committee, said that Republicans and Democrats were “very close” to a compromise. A bipartisan group in the Senate, led by Democrat Kirsten Gillibrand and Republican Cynthia Lummis, has been working towards similar legislation.
Members of both parties of Congress have voiced apprehension about designing a suitable framework for stablecoins in a comprehensive bill. The Clarity for Payment Stablecoins Act, a bill proposed in the House in July 2023, advanced from committee and was scheduled for a vote, but it hasn’t seen much movement since then.
If lawmakers advance digital asset-related bills in 2024, they could also receive backlash from pro and anti-crypto voters in an election year with control of the Senate, House, and the Presidency at stake.
Senator Brown, who often expresses the risks of digital assets, will battle for his Ohio seat against Republican Bernie Moreno. Representative Patrick McHenry, chairman of the House Financial Services Committee, declared in December that he would not seek reelection in 2024. Both positions could be essential in passing crypto legislation in 2025.
