The U.S. is advancing stablecoin regulation through two key bills: the STABLE Act and the GENIUS Act, both progressing in Congress as of April 2025. The STABLE Act, passed by the House Financial Services Committee, and the GENIUS Act, approved by the Senate Banking Committee, aim to establish a federal framework for dollar-backed stablecoins. They mandate 1:1 reserves with high-quality assets like U.S. Treasuries, prohibit algorithmic stablecoins, and restrict issuers to banks, credit unions, or approved nonbanks. The bills emphasize consumer protection, anti-money laundering compliance, and U.S. dollar dominance while addressing illicit finance risks. However, critics, including Senator Elizabeth Warren, warn of financial stability risks and potential Big Tech dominance, citing inadequate oversight of offshore issuers like Tether. Both bills are expected to align through negotiations, with President Trump aiming to sign them by August 2025, potentially reshaping the $230 billion stablecoin market.
