Could a week-long delay in the U.S. stablecoin bill be a turning point in Crypto regulation?

Compile: Blockchain Knight

The House Financial Services Committee’s decision to delay a vote on stablecoin and crypto trading legislation by a week caused an uproar.

The vote, originally scheduled for July 17, was postponed to July 26, indicating the US’s complicated stance on crypto regulation.

The bill aims to “regulate stablecoins for payments and provide a legal basis for other purposes,” and a bipartisan debate has begun.

On the one hand, Democratic lawmakers continue to express skepticism, and they agree with industry advocates that existing securities laws are already sufficient to regulate the crypto industry.

“It proposes a cumbersome framework whose inherent structural problems will undermine the ability of our federal financial regulators to properly regulate and oversee an industry already rife with instability and fraud,” said Rep.

On the other hand, Republicans led by Reps. French Hill and Patrick McHenry see the need for new laws to regulate digital assets.

They have made the CFTC (Commodity Futures Trading Commission) the preferred regulator in order to weaken the influence of the SEC (Securities and Exchange Commission) on the Crypto industry.

McHenry said: “We want to have a stablecoin bill that will deal with capital raising for digital assets and how products can move from a securities regime to a commodity regime. products, we want to preserve our rights and the ability for people to exchange those products.”

The latest developments in the SEC vs. Ripple Labs case may affect the proceedings.

Federal Judge Analisa Torres has issued a landmark ruling that Ripple’s sale of XRP to institutional investors violated securities laws. However, other sales, especially those made on Crypto exchanges to ordinary investors, are not subject to these rules.

McHenry also mentioned, “This ruling gives large institutional investors more protection than ordinary Americans. This is what happens when regulators force the courts, not Congress, to set policy. Our comprehensive market structure legislation will Giving all investors, customers and market participants the same long-term protections as traditional financial markets".

This ruling in the Ripple case even sent waves throughout Wall Street and Silicon Valley.

However, investor protections for registered investment products do not appear to extend to retail traders. As Howard Fischer, a former senior SEC trial attorney, noted, the difference is “almost counterintuitive.”

The fallout from the ruling gave Republicans an opportunity to rally support for their proposed stablecoin bill. However, they face firm opposition from Democrats.

Democrats generally support SEC Chairman Gary Gensler’s stance that most transactions in the crypto industry fall under the SEC’s jurisdiction.

The House Agriculture Committee is also expected to debate and vote on the bill. This is highly anticipated as these debates and votes may have an impact on the future regulatory framework for the crypto industry.

Postponing the Stablecoin Act by a week may provide a respite for all parties involved, which is conducive to more consultation and revision by all parties.