On Tuesday, the Senate’s Banking, Housing, and Urban Affairs Committee discussion was polite but divided regarding the topic of stablecoins and the cryptocurrency industry in general. The session was organized by Sen. Sherrod brown (D-OH), the chairman of the banking committee. He opened the discussion with his first remarks against stablecoins.

Let’s not forget one thing: Putting your money into stablecoins doesn’t guarantee that you will get it back.
said Sen. Brown.

It’s also not a currency of fixed value, so there is no way to guarantee that you will get your money back. Although stablecoins or crypto markets may seem like an alternative to banking, this mirrors the system which has no accountability and is governed by zero rules.
At the other end of the political debate, minority leader on the committee Sen. Patrick Toomey (R-PA) presented a framework for regulating stablecoins, lauding their benefits and usability — particularly for small businesses, which employ nearly half of U.S. workers.

Stablecoins can be used to pay small business payments or for international remittances. Stablecoins are much cheaper than traditional payment methods and can take several days for funds to be settled.
Toomey.

The majority of dialogue between committee members was, as expected, partisan. Four witnesses representing industry and academia provided expert testimony and answered questions for the senators.

• Alexis Goldstein is the director of financial policies at Open Markets Institute.
• Ms. Jai Massari, Partner — Davis Polk & Wardwell, LLP
• Circle, Chief Strategy Officer and Head of Global Policy, Dante Disparte
• Professor Hilary J. Allen — American University Washington College of Law

Here’s the flipside

• Tuesday’s Senate’s Banking, Housing and Urban Affairs Committee hearing on stablecoins played out as expected, showcasing rhetoric from condemning Dems and commending Republicans.
• That outcome is much different than last week’s House Finance Committee hearing – suggesting that cryptos may be lined up as yet another political punching bag instead of a tool toward economic equality.

Why you should care:
While no decisive action came out of the Senate’s session — same as with the House Finance Committee hearing — it’s clear that congressional conversations will be ongoing.

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