#USStablecoinBill notably the GENIUS Act and STABLE Act, aims to establish a federal regulatory framework for dollar-pegged stablecoins, addressing their rapid growth and risks.
⚖️ Passed by the Senate Banking Committee (18-6, March 2025) and House Financial Services Committee (32-17, April 2025), these bills require issuers to maintain 1:1 reserves with high-quality assets like US Treasuries, prohibit rehypothecation, and mandate monthly reserve disclosures audited by third parties.
⚖️ They ban algorithmic stablecoins, citing risks exposed by TerraUSD’s 2022 collapse, and impose strict anti-money laundering and sanctions compliance to curb illicit finance, estimated at $17 billion annually.
⚖️ The bills balance federal and state oversight. Issuers with under $10 billion in circulation can opt for state regulation if aligned with federal standards, while larger issuers face federal supervision.
⚖️ Critics, including Senator Elizabeth Warren, argue the bills lack robust consumer protections and national security safeguards, potentially enabling Big Tech or figures like Elon Musk to issue private currencies, undermining banks and the dollar. A recent setback saw nine Senate Democrats withdraw support from the GENIUS Act, citing these concerns, delaying progress.
⚖️ Proponents, including Senators Hagerty and Lummis, emphasize stablecoins’ role in preserving dollar dominance and fostering innovation. With President Trump’s push for enactment by August 2025, the bills face intense debate over reconciling differences and addressing offshore issuers like Tether.
1
+0.01%
0.9986
+0.02%
