#USStablecoinBill

The U.S. Congress is advancing stablecoin legislation in 2025 with two main bills: the Senate’s GENIUS Act and the House’s STABLE Act, both aiming to regulate dollar-pegged payment stablecoins while balancing innovation, consumer protection, and U.S. dollar dominance.

GENIUS Act: Introduced February 4, 2025, by Senator Hagerty (R-TN) with bipartisan co-sponsors. Passed Senate Banking Committee March 13, 2025 (18-6 vote), awaiting full Senate vote. Defines payment stablecoins, requires 1:1 reserve backing with liquid assets, allows state regulation for issuers under $10 billion, bans algorithmic stablecoins, prohibits reserve rehypothecation, and mandates monthly audited disclosures. Does not grant nonbank issuers Federal Reserve master accounts. Targets offshore issuers but enforcement debated.

STABLE Act: Introduced February 6, 2025, by Reps. Hill (R-AR) and Steil (R-WI). Passed House Financial Services Committee April 2, 2025 (32-17 vote), awaiting full House vote. Mirrors GENIUS Act with 1:1 reserves, licensing, and state/federal oversight split. Bans interest-bearing stablecoins, requires audits and transparency. Reportedly influenced by Tether, raising concerns.

Context: Bipartisan urgency, backed by Trump administration, aims for passage by July 2025. Bills address $17 billion in illicit stablecoin transactions (2022-2023) and aim to boost U.S. financial leadership. Critics, like Rep. Waters, warn of Big Tech risks and weak offshore enforcement. Waters’ stricter bill lacks traction. EU’s MiCA and other global rules highlight U.S. lag.

Debates: Offshore loopholes, Big Tech issuance risks, and banking system impacts (e.g., deposit competition) are contentious. GENIUS has stricter audits; STABLE bans interest. X posts suggest stablecoin optimism, but “legal tender” claims are unsupported.

Outlook: Bills likely to align and pass by mid-2025, legitimizing stablecoins like USDC while pressuring offshore issuers like Tether. Concerns remain about enforcement and industry influence.