House Republican Proposes A Marijuana-Stablecoin Combo Bill

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As a researcher with a background in financial regulation, I find the recent developments surrounding the potential linkage of marijuana banking legislation and stablecoin regulation intriguing. The willingness of Representative French Hill to endorse such a bill is a positive sign for those advocating for both causes. However, the ultimate decision on passing this package lies with House leadership, which adds an element of uncertainty.

Representation by French Hill, a notable GOP figure on the Financial Services Committee, has signaled openness to backing a single bill merging regulations for marijuana banking and stablecoins. However, his endorsement hinges on reaching a consensus in negotiations.

House Leadership to Decide on the Bill

In a Bloomberg Television interview on “Balance of Power,” Hill hinted that the House leadership would decide how to move forward with passing the digital asset legislation. Currently serving as the chair of the subcommittee on digital assets, Hill shared this insight.

As a long-term advocate for the SAFE Banking Act, I’ve been advocating for its passage in Congress for the past nine years. By enabling legal cannabis businesses to access the banking system, I believe we can make it simpler to identify and root out illicit activities and criminal enterprises that thrive outside of regulatory frameworks.

An Arkansas GOP representative observed that legislators are approaching agreement on coin stabilization bills among parties, mirroring remarks made previously this week by prominent Democrat Maxine Waters.

“In essence, significant strides have been made over the past year,” he remarked. “The passage of these two bills would bring substantial benefits to our nation.”

The conversation surrounding this issue has included representatives such as Waters from the Financial Services Committee, Patrick McHenry as its Chairman, and Senate Majority Leader Chuck Schumer. They have been deliberating on the possibility of attaching stablecoin legislation to the upcoming Federal Aviation Administration (FAA) reauthorization bill.

According to Chairman Sherrod Brown of the Senate Banking Committee, he would support a bill on stablecoins under certain conditions, as reported by Bloomberg. Specifically, this legislation must prioritize consumer protection and align with two of his major legislative initiatives: the marijuana banking reform and efforts to recoup funds from failed financial institutions’ executives.

DoJ vs SEC on Stablecoins

As an analyst, I’m excited to share that a noteworthy turn of events has emerged in the ongoing legal battle between Binance Holdings and the United States Securities and Exchange Commission (SEC). The team, including the former CEO Changpeng “CZ” Zhao, intends to leverage essential information from the United States v. Eisenberg lawsuit. This data may potentially question the SEC’s stance on classifying stablecoins such as BUSD and USDC as unregistered securities.

The decision in this case, coupled with the Department of Justice’s position that USDC is not classified as a security, could significantly influence the outcome of Binance’s ongoing legal dispute with the SEC.

In the multimillion-dollar Mango Markets scandal, Avraham Eisenberg was found responsible for committing fraud and market manipulation according to the jury’s verdict. However, an exhibit included in the US Department of Justice (DOJ) filing argues that USDC, a stablecoin, does not fall under the classification of a security based on the Howey test.

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2024-04-27 11:49