According to Lummis, Stablecoin law is a top priority for the subcommittee

This is a segment of the Forward Guidance Newsletter. To read the complete edition, Subscribe.

The Senate Banking Committee’s Digital Assets Subcommittee held its first hearing yesterday, and of course Stablecoins became central.

Cynthia Ramis, chairing the newly created subcommittee, said the Stubcoin Act was a top priority. The market structure bill, which we began to see movement in the last session, continues.

“We are on the cliff that ultimately creates a bipartisan legislative framework for both the stubcoin and the market structure,” she said.

Timothy Massad, a former CFTC chairperson who was a witness during the hearing, advised lawmakers to enter zero with stablecoins. Market structure laws must punt until you answer basic questions.

“Does regulation of market structures require that complex regulatory boundaries be resolved, such as when digital assets are security, commodities, or both?” he said. “It works very well in this country and risks substantially undermining the securities law framework that made the securities market a global vy desire.”

The comments are as the industry continues to speculate about what Stablecoin Bill looks like. Ramis’ Genius Act, introduced alongside Democrat Sen. Kirsten Gillibrand, provides that “payment stability” must come from registered issuers and receive 1:1 support from Fiat currency or other secure reserves.