#USStablecoinBill

The U.S. Congress is currently deliberating two pivotal bills aimed at establishing a comprehensive regulatory framework for stablecoins: the GENIUS Act in the Senate and the STABLE Act of 2025 in the House. These legislative efforts seek to introduce federal oversight for stablecoin issuers, but both face significant political hurdles.

⸻

🏛️ Legislative Overview

GENIUS Act (Senate)

• Purpose: To create a licensing regime for “permitted payment stablecoin issuers,” encompassing banks and qualified nonbank entities.

• Key Provisions:

• Reserve Requirements: Mandates a 1:1 backing of stablecoins with U.S. dollars or high-quality liquid assets.

• Operational Standards: Prohibits the rehypothecation of reserves and requires monthly certifications of reserve sufficiency.

• Regulatory Oversight: Empowers federal regulators to oversee issuers’ capital, liquidity, and cybersecurity practices.

• Securities Classification: Clarifies that stablecoins are not classified as securities under federal law.

STABLE Act of 2025 (House)

• Purpose: To restrict the issuance of payment stablecoins to federally approved entities.

• Key Provisions:

• Issuance Restrictions: Prohibits any person other than a permitted payment stablecoin issuer from issuing payment stablecoins in the U.S.

• Foreign Issuer Conditions: Allows foreign stablecoin issuers to operate in the U.S. only if their home country’s regulatory regime is deemed comparable by the U.S. Treasury and they consent to U.S. oversight.

• Penalties: Imposes civil penalties of up to $100,000 per day for violations.