Another epically bad stablecoin bill has just dropped (this one from Sens Lummis & Gillibrand) and so it’s time for another epically long tweet thread pointing out the ways in which this bill will make us worse off. lummis.senate.gov/press-releases… And by us, I mean everybody but Circle and Coinbase – their USDC stablecoin will be the primary beneficiary of proposed stablecoin legislation.

Although, there are a few parts of this particular hasty mishmash that might give even Circle/Coinbase pause.

Rs on House FS and Ag Cttees have dropped text of their digital asset market structure bill, which they’re rushing into markup next week. There are many reasons to pump the brakes on this bill, and I’ll discuss some in this thread. But first - what’s really driving the rush? First of all, does anyone really think that regulating the crypto markets is the most pressing financial or agricultural issue facing the American public? No. Instead, pressure for this legislation is coming from some venture capitalists, the crypto industry, and their lobbyists.

So the HFSC stablecoin bill dropped. TL;DR, it won’t fix problems with stablecoins (which aren't used for payments anyway), but it will extend govt safety net to more firms. docs.house.gov/meetings/BA/BA… The bill contemplates that stablecoin issuers (bank and non-bank) get access to discount window, and to Fed Master Accounts (which presumably will come with daylight overdraft protection from the Fed). The financial safety net here is being extended to non-banks.

Today, Lummis & Gillibrand launched their "bipartisan" crypto bill. It's bipartisan in the sense that senators from different parties are giving the crypto industry pretty much what it wants, but it doesn't honor the regulatory goals that Ds typically prioritize. A thread. When it comes to the goals of both investor protection and financial stability, this bill is a deregulatory departure from the status quo. It gives most jurisdiction over crypto assets to the CFTC, which has no investor protection mandate and far fewer resources than the SEC.