Congress will introduce legislation on stablecoins, a cryptocurrency that is backed by the U.S. dollar and has less volatility, within the first 100 days of the Trump administration, a group of lawmakers said Tuesday.
Why it matters: The Trump White House has taken the friendliest approach to the crypto industry yet.
Republican lawmakers, who have full control of Congress, will likely take the lead in setting rules for the largely unregulated industry.
BREAKING: Top lawmakers from select congressional committees, including Republican Sen. Tim Scott (R-S.C.), who chairs the Senate Banking Committee, and White House crypto czar David Sacks, have announced a working group aimed at accelerating consensus on key pieces of digital asset legislation.
What they say: “I’ve spoken to a lot of founders over the past few years, and they’ve told me time and time again that the number one thing they need from Washington is regulatory clarity,” says Sacks, who also runs a venture capital firm.
What we’re watching: Stablecoin legislation is likely to be the first consideration, but lawmakers have multiple priorities.
Senator Bill Hagerty (R.-Tenn.) introduced a bill on Tuesday that would regulate stablecoins.
Democratic leaders have expressed concern that stablecoins are a way to facilitate illegal activities.
“I am committed to working to ensure these bills are a bipartisan success in the House,” said House Financial Services Committee Chairman French Hill (R-Ark.).
Between the lines: Since the crypto boom of 2021 has subsided, lawmakers have moved to introduce market structure-related legislation, ranging from deciding which agency will regulate crypto tokens to creating an entirely new category of financial asset under the law.
What to watch: Hagerty’s legislation came up frequently at the event today, but the senator wasn’t there. It’s called the National Guidance and Establishment of Innovation for U.S. Stablecoins (GENIUS) Act. It would include:
For stablecoins, licensing is pegged to a monetary unit of value (usually the dollar).
Allow state regulators to oversee stablecoins with a market cap of less than $10 billion, but apply Federal-level standards to larger cryptocurrencies
Determine backup requirements and other measures for security and law enforcement
