Investment bank TD Cowen speculates that recent talks between Senate Majority Leader Chuck Schumer and House leaders could result in stablecoin legislation being passed either this summer or in the year-end lame-duck session.

Stablecoin legislation is a crucial area of financial technology that requires regulatory clarification.

Last week, Schumer met with House Financial Services Chair Patrick McHenry and ranking member Maxine Waters to discuss the proposal.

Punchbowl News and Politico have reported that the talks also looked at the prospect of connecting the stablecoin bill to other important bills, such the proposed cannabis banking bill and the reauthorization of the Federal Aviation Administration (FAA).

There is now a deadline of May 10th for the FAA reauthorization; nevertheless, international concerns, particularly, recent hostilities in the wake of an Iranian attack.

Congress might have more room to work on and negotiate a more comprehensive legislation package that includes stablecoin regulation as a result of this circumstance.

Currently, the House and Senate are working to reconcile differences in their reauthorization legislation for the FAA, with an emphasis on safety.

Bills for stablecoins

Waters and McHenry have been working on a stablecoin regulatory framework, with a primary focus on regulatory authorities' jurisdiction.

The bill was advanced by the committee, but its progress was halted by partisan differences and a contentious clause about the state regulators' involvement in stablecoin issuances.

Senators Kirsten Gillibrand and Cynthia Lummis are getting ready to present a measure in the Senate that will safeguard consumers and provide clarity on stablecoins.

Discussions of tying this initiative in with the Secure and The goal of the Fair Enforcement Regulation financial Act is to provide financial services to the marijuana sector; nevertheless, obstacles still exist because of the resistance of some influential lawmakers.

Given House Speaker Mike Johnson's resistance to the marijuana banking bill, the likelihood of a legislative resolution is still unknown.

The stablecoin bill, however, has several chances to be attached to major legislative initiatives like the NDAA or other big measures during the lame-duck session because of the approaching sessions and the end-of-year political frenzy.