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There is an “urgent need for legislation” after the sudden collapse of crypto exchange FTX, Rep. Maxine Waters, D-Calif., said in a statement.

Waters, the chair of the House Financial Services Committee, has been drafting bipartisan legislation to regulate stablecoins in the U.S. The chaos at one of the world’s largest crypto exchanges is proof that lawmakers should act, Waters said. 

“Now more than ever, it is clear that there are major consequences when cryptocurrency entities operate without robust federal oversight and protections for customers,” Waters said. “This week’s news further highlights the urgent need for legislation.”

For months, Waters and ranking Republican Rep. Patrick McHenry, R-N.C., have worked on a bill to set new rules for stablecoins in the United States. A draft of the legislation would create a federal framework around stablecoins and would temporarily ban the types of payment coins that are not backed by outside assets.

McHenry told The Block last month that the Biden administration had held up those talks. 

Tuesday’s midterm elections could also affect talks, as it remains unclear which party will hold a majority in the House of Representatives — an outcome that will determine whether McHenry or Waters chairs the committee next year.  

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