“I want to thank you for joining our second stablecoin hearing of the new subcommittee on Digital Assets, Financial Technology and Inclusion.
“Although this is only the second stablecoin hearing for this Subcommittee, Member-level conversations have been going on since 2021, and the Committee has worked significantly with our members on both sides of the aisle and with the President’s Working Group report on stablecoins.
“From those hearings, both sides of the aisle discussed key guideposts for an effective regulatory framework for payment stablecoins, which were incorporated into the stablecoin proposal from last Congress and the two proposals noticed for today’s hearing.
“For example, Under Secretary Liang made it clear that any regulatory framework for stablecoins must have strict requirements in place around reserves and capital to guard against potential runs. So, we included those requirements in both of the proposals.
“The Under Secretary also made it clear that disclosures and attestations are critical for creating enhanced transparency among stablecoin issuers. And those were included as well.
“To echo the Under Secretary and the title of today’s hearing, we want for payment stablecoins to be used as a payment mechanism, which they’re really not today. And the only way we can do that is by passing the appropriate regulatory framework legislation.
“In 2022, we made extensive progress on bipartisan stablecoin legislation. We’ve continued to build on those efforts by taking feedback from members and stakeholders, and the legislation noticed today reflects that feedback.
“There are clearly many ways where members have different views, as you can see from the two proposals. But from my seat as Chairman of this Subcommittee, I remain convinced that members on both sides of the aisle are actively working in good faith to find agreement on these key points.
“We also agree on the basic protections that must be included in any stablecoin legislation. Consumer, investor protection is at the heart of our bill.
“So, I want to be clear that while we noticed two different legislative proposals today, we are not starting from scratch.
“To do so would have ignored all the effort that was made and common ground that was found during the negotiations on the previous proposal.
“In fact, Ranking Member Waters’ proposal is substantially similar to the September draft that we noticed at the April hearing, apart from three key changes.
“Not only that, but Republicans made the exact same change in our proposal as well for one of those.
“So, while there’s still work to be done—and we should use today’s hearing to discuss those key areas—I want to emphasize that the similarities between the two proposals are strong, and that’s why we’re not that far apart.
“Without action from Congress, however, offshore and opaque projects will continue to thrive and stablecoin issuers will not feel confident to seek opportunities in the United States, and to echo the hearing title, stablecoins will not be stable.
“Thus, opposing legislation is not a vote in favor of consumer protection. Rather, it’s a vote for putting consumers at risk by allowing a regulatory environment that pushes stablecoins further away from an appropriate U.S. regulatory oversight.
“We have the power to reverse this trend and cement the U.S. as the leading place for safe payments innovation.
“I look forward to the discussion today and our witnesses’ views on the two proposals and ultimately bring legal clarity and consumer protection to the stablecoin ecosystem.”
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