#USStablecoinBill

As of May 2025, the U.S. Senate is advancing the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, aiming to establish a federal regulatory framework for stablecoin issuers. The bill proposes requirements such as 100% reserve backing with U.S. dollars or short-term Treasuries, strict marketing standards, and regulatory oversight for large issuers.

However, the bill’s progress faces challenges. Recently, nine Senate Democrats withdrew their support, citing concerns over inadequate provisions for anti-money laundering, consumer protection, and financial stability. This shift threatens the bill’s bipartisan backing and its chances of passing.

Complicating matters, ethical concerns have arisen regarding former President Donald Trump’s family’s involvement in the crypto industry. World Liberty Financial, co-founded by Eric Trump, is linked to a $2 billion stablecoin deal with Binance, raising questions about potential conflicts of interest.

Despite these hurdles, Senate Majority Leader John Thune is pushing for a vote on the GENIUS Act, emphasizing the need for regulatory clarity in the rapidly evolving digital asset landscape.