The U.S. Congress is currently deliberating two significant bills aimed at establishing a regulatory framework for stablecoins:
๐๏ธ Senate: GENIUS Act
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, introduced by Senator Bill Hagerty (R-TN) and co-sponsored by Senators Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY), seeks to create a federal licensing system for stablecoin issuers. The bill passed the Senate Banking Committee with an 18โ6 vote. Senate Majority Leader John Thune has initiated procedures to expedite a floor vote, though no date has been set.
However, the bill faces challenges. Nine Senate Democrats have withdrawn their support, expressing concerns over insufficient provisions addressing money laundering and financial system risks. Additionally, the bill's perceived leniency towards foreign stablecoin issuers, such as Tether, and its association with former President Trump's crypto interests have intensified scrutiny.
๐๏ธ House: STABLE Act
The Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act of 2025 (H.R. 2392), introduced by Representative Bryan Steil (R-WI), aims to regulate payment stablecoins. Key provisions include:
Licensing Requirements: Mandates that stablecoin issuers obtain federal approval.
Consumer Protections: Prohibits misrepresentation of stablecoins as being backed by the U.S. government or insured by federal agencies.
Governance Standards: Bars individuals convicted of financial crimes from serving as officers or directors of stablecoin issuers.
The bill has advanced through the House Financial Services Committee.
โ๏ธ Key Issues and Debates
Foreign Issuer Exemptions: Both bills have been criticized for exempting major foreign stablecoin issuers like Tether from immediate compliance, potentially creating regulatory disparities.
Political Dynamics: The association of the GENIUS Act with former President Trump's crypto ventures has led to divisions within the Democratic Party