Maxine Waters New Draft Calls for Stricter Stablecoin Regulations

Maxine Waters Lead Charge on Stablecoin Oversight With New Legislation

California Representative Maxine Waters has called on lawmakers in the U.S. House of Representatives to support a bill on payment stablecoins. That was drafted in the last session of Congress. As a member of the House Financial Services Committee, Waters has also introduced a new proposal for stablecoin regulation. This proposal aims to provide federal oversight and set requirements for issuers.

According to the California lawmakers, the bill represented “three years’ worth of work to craft bipartisan stablecoins' legislation.” The proposal aims to close loopholes that allow issuers to bypass U.S. laws by operating overseas. It also prohibits certain convicted fraudsters from holding senior positions at stablecoin companies.

“At the beginning of this Congress, Chair Hill reached out in a bipartnership effort to work on stablecoin legislation,” said Rep. Maxine Waters. “I strongly believe that the proposal I’ve introduced today offers the best foundation to move forward and pass the stablecoin regulations we need the first.”

Maxine Waters Introduces Stablecoin Regulation Proposal

Maxine Waters, the top Democrat on the House Financial Services Committee, has put forward a new proposal to regulate stablecoins under federal supervision.

The draft assigns oversight duties to federal agencies, including the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC), while also giving state regulators a role.

One of the key rules in the proposal is, that stablecoin issuers must keep a one-to-one reserve to maintain financial stability. Maxine Waters' plan takes a different approach from past Republican-led efforts, which she has criticized. In 2022, she opposed a Republican bill that would have let state regulators approve stablecoin issuers without requiring Federal Reserve involvement.

Maxine Waters crypto friend in the white house

Maxine Waters wants some serious rules for stablecoins. Requiring stablecoin issuers to maintain one-to-one reserves and closing loopholes that allow them to bypass U.S. oversight by operating overseas. Meanwhile, The White House recently appointed Ripple CEO Brad Garlinghouse as a crypto advisor. Ripple has pushed for more clear, less restrictive regulations. Brad Garlinghouse’s role, especially after meeting with President-elect Trump indicates that the administration may focus more on working with the crypto industry rather than imposing heavy regulations. This highlights a key divide: one side prioritizes strict control for stability, while the other favors collaboration to encourage growth.

Stablecoin as a Priority Under Trump Administration

Stablecoins have become a key focus in Washington, with both parties pushing their proposals under President Donald Trump’s administration.

Maxine Waters has stressed the need for bipartisan cooperation. Calling for a “grand bargain on stablecoins” in the past. Although past efforts to pass legislation have stalled, recent discussions indicate a renewed push for regulation. The cherry on top, the White House appointed Ripple CEO Brad Garlinghouse as a crypto advisor.

With Republicans and Democrats proposing different approaches, negotiations in Congress are expected to continue in the coming months.