#USStablecoinBill The U.S. faces significant complexities in advancing stablecoin legislation, particularly with the GENIUS Act, as lawmakers grapple with:
1. Federal vs. State Oversight: Balancing state and federal regulatory authority remains contentious. The bill permits state regulation for issuers under $10 billion in market cap, but requires federal oversight beyond this threshold, risking jurisdictional conflicts and inconsistent enforcement.
2. Agency Turf Wars: Disagreements persist over whether the OCC or the Federal Reserve should supervise nonbank issuers, reflecting broader tensions over central bank independence.
3. Algorithmic Stablecoins: While the GENIUS Act sidesteps the issue, competing proposals like the STABLE Act impose a two-year ban on new algorithmic stablecoins, complicating consensus.
4. Interest Payments: Crypto firms advocate allowing yield on stablecoins, but banks warn this could destabilize traditional deposits, creating a regulatory rift.
5. Legal Classification: Ambiguities persist over whether stablecoins are securities or commodities, risking overlaps with pending market structure bills.
These challenges underscore the difficulty of harmonizing innovation, consumer protection, and systemic stability in a polarized legislative environment.