Key House Republican Would Back Stablecoin-Marijuana Combo Bill

Steven T. Dennis, Bloomberg News

A customer pays for recreational marijuana products at Cresco Labs Sunnyside* Lakeview dispensary in Chicago, Illinois, U.S., on Wednesday, Jan. 1, 2020. Illinois' legalization of recreational pot is likely to be the industry's "most significant fundamental catalyst" in 2020 and Cresco Labs Inc. and Green Thumb Industries Inc. will benefit the most, according to investment firm Compass Point. Photographer: Daniel Acker/Bloomberg , Bloomberg

(Bloomberg) -- Representative French Hill, a senior Republican on the Financial Services Committee, said he would support combination legislation tying marijuana banking to stablecoin regulation if negotiators can reach a deal.

In an interview on Bloomberg Television’s “Balance of Power,” Hill said it would be up to the House leadership on how best to pass such a package.

“I would vote for it if it were coupled,” added Hill, who chairs the subcommittee on digital assets. “I have supported the SAFE Banking Act for nine years in Congress now, which would allow cannabis dealers in states where it’s legal to have access to the banking system. I think it’s a lot easier to catch bad actors and illegal activity if those companies are participating in the banking system.”

The Arkansas Republican said lawmakers are close to reaching a bipartisan agreement on legislation regulating stablecoins, agreeing with comments made earlier this week by top panel Democrat Maxine Waters to Bloomberg.

“Bottom line is we’ve made a lot of progress in the last year,” he said. “Our country will benefit if we can get both of these bills passed.”

Earlier: Key Democrat Touts Progress on Stablecoin, Marijuana Legislation

Waters and Financial Services Chairman Patrick McHenry have discussed the issue with Senate Majority Leader Chuck Schumer, including the possibility of tying the stablecoin bill to the must-pass Federal Aviation Administration reauthorization next month.

Senate Banking Chairman Sherrod Brown has told Bloomberg he could support a stablecoin bill provided it protected consumers and was attached to two of his priorities: the marijuana banking bill and legislation to claw back the compensation of executives at failed lenders.

--With assistance from Kailey Leinz and Joe Mathieu.