#USStablecoinBill

The U.S. stablecoin regulatory landscape is undergoing significant developments, with multiple legislative efforts aiming to establish a comprehensive framework for these digital assets.

---

## šŸ›ļø Legislative Efforts on Stablecoin Regulation

### 1. **Lummis-Gillibrand Payment Stablecoin Act (S.4155)**

Introduced in April 2024 by Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY), this bipartisan bill seeks to:

* Mandate **1:1 reserves** for stablecoin issuers.

* Prohibit **algorithmic stablecoins**.

* Implement **anti-money laundering (AML)** and **sanctions compliance** requirements.

* Establish a **dual federal-state regulatory regime** for issuers. ([gillibrand.senate.gov][1])

The bill is currently under consideration by the Senate Banking Committee.([Politico][2])

### 2. **GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins)**

Introduced in early 2025 by Senator Bill Hagerty (R-TN) and co-sponsored by Senators Tim Scott (R-SC), Kirsten Gillibrand (D-NY), and Cynthia Lummis (R-WY), the GENIUS Act aims to:([Davis Polk][3])

* Create a **licensing framework** for stablecoin issuers.

* Enforce **reserve requirements** and **light-touch regulatory standards**.

* Provide **bankruptcy protections** for stablecoin holders. ([scholarship.law.gwu.edu][4], [ABA Banking Journal][5], [Congress.gov | Library of Congress][6])

The bill has passed the Senate Banking Committee and is awaiting further action.([ABA Banking Journal][5])

---

## āš–ļø Political Dynamics and Challenges

Despite initial bipartisan support, recent developments have introduced complexities:([Politico][7])

* Nine Senate Democrats have withdrawn support from the GENIUS Act, citing concerns over insufficient AML provisions and potential risks to the financial system. ([Politico][7])

* The bill's association with former President Trump's reported \$2 billion stablecoin venture has intensified scrutiny and political tensions. ([Politico][7])