#StablecoinNews “Why the Stablecoin Bill Is the Domino for All Other U.S. Crypto Laws”

Published May 2025, CoinDesk Policy Brief

Key points

1. Last viable window this term.

The bill—officially the “GENESIS (Generating Effective National Innovation in Stablecoins) Act”—is the only crypto measure that leadership has agreed to floor time for before the August recess.

2. Guard-rails without a CBDC.

• Requires dollar-backed reserves kept at insured banks

• Creates a two-tier licensing regime (state and federal)

• Explicitly bars the Fed from issuing a retail CBDC without further authorization

• Caps non-bank issuers at $10 billion outstanding unless they take a Fed-level charter.

3. Deaton’s warning.

Lawyer John Deaton told reporters the Senate math is “48–52 at best.” If it fails, he argues, election-year gridlock means:

> “No market-structure bill, no tax fix, nothing until the 119th Congress—maybe 2029 if we’re lucky.”

4. Knock-on effects.

Spot-ETF approvals could stall because agencies would claim no clear statutory mandate.

Bank custody rules (SAB 121) might stay in limbo.

State-by-state patchwork would deepen, pushing issuers offshore.

5. Industry response.

Circle and Paxos are lobbying swing-state senators, emphasizing consumer-protection wins and dollar-dominance rhetoric.

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Why it matters for $XRP holders

Ripple’s on-ramp products rely on banks comfortable with tokenized dollars. If banks remain uncertain about stablecoin liabilities, liquidity for XRPL-based cross-border payouts could tighten—hurting spreads and volume.