#USStablecoinBill
Backed by the Senate Banking Committee (18-6, March 2025) and House Financial Services Committee (32-17, April 2025), these bills mandate issuers to hold 1:1 reserves in the form of high-quality assets such as US Treasuries, ban rehypothecation, and demand third-party audited monthly reserve reporting.
They prohibit algorithmic stable coins because of risks exposed by the 2022 Terra USD collapse, and impose rigorous anti-money laundering and sanctions compliance to hold illicit finance of an estimated $17 billion a year.
The bills balance federal and state regulation. State regulation is optional for issuers of less than $10 billion outstanding if aligned with federal terms but obligatory for those with greater volumes.
Opponents, including Senator Elizabeth Warren, claim the bills are light on consumer protection and national security provisions, allowing Big Tech or a character like Elon Musk to create private currencies, undermining banks and the dollar. A recent roadblock saw nine Senate Democrats rescind their backing for the GENIUS Act due to these reasons, bringing the process to a standstill.
