On May 16, 2025, U.S. Senator from the Republican Party Patrick McHenry submitted a proposal for a bill to regulate stablecoins, reports FOX. The document, developed in collaboration with the House committee, aims to create clear rules for stablecoin issuers such as USDC and Tether to ensure the stability of the financial system.
The bill provides for mandatory asset reservation at a 1:1 ratio, regular audits, and licensing of issuers. It also introduces restrictions on algorithmic stablecoins, similar to TerraUSD, due to their instability, as seen during the crash in 2022. Senator McHenry emphasized that the initiative aims to protect consumers and foster innovation, allowing stablecoins to safely integrate into the traditional financial system.
The proposal has already received support from some lawmakers but faces criticism. Some Democrats believe that regulation may stifle the development of the crypto industry, while others insist on stricter measures. Voting in the House of Representatives is expected soon, and its results could determine the future of stablecoins in the U.S., impacting the global market.
