Lawmakers could get a bill to regulate stablecoins to the finish line, but it could face headwinds from Democrats who may have other priorities, according to investment bank TD Cowen.

There is a "growing sense of optimism" that Congress will enact a regulatory framework for stablecoins by the end of the year, TD Cowen Washington Research Group, led by Jaret Seiberg, wrote in a note on Monday. 

"House Financial Services Chair Patrick McHenry and Rep. Maxine Waters have been close for months over the legislative package," the TD Cowen analyst said. "In addition, McHenry appears willing to compromise as he is retiring and would like enactment of stable coin legislation to be the capstone to his chairmanship. In addition, Team Biden also appears to want a stable coin bill."

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