U.S. Stablecoin Regulatory Dual-Track System: Analyzing the Path Differences of the STABLE Act and the GENIUS Act
Recently, two major bills in the U.S. Congress regarding stablecoin regulation have drawn market attention. The STABLE Act proposed by the House of Representatives and the GENIUS Act promoted by the Senate exhibit distinctly different regulatory approaches.
In simple terms, the STABLE Act adopts a more conservative regulatory stance, requiring stablecoin issuers to maintain a 1:1 reserve of cash, U.S. Treasury securities, or highly liquid assets. While there is no issuance cap, it strictly limits the scope of operations, allowing only basic services such as issuance, redemption, and custody, and stipulates that false reporting will face severe penalties.
In contrast, the GENIUS Act places greater emphasis on market efficiency, allowing reserve assets to include reverse repurchase agreements and money market fund investments, and adopting a layered regulatory model. It implements federal regulation for issuers with assets exceeding $10 billion, while granting stablecoin holders priority in bankruptcy repayment.
Currently, the progress of the two bills is uneven. The GENIUS Act has already been passed by the Senate Banking Committee, and the White House has expressed support. Meanwhile, the revised STABLE Act has just been submitted for consideration in the House of Representatives. Market analysis indicates that if the GENIUS Act is ultimately passed, it could attract more institutional investors; whereas the strict regulations of the STABLE Act may stifle industry innovation.
It is worth noting that the compliance rate of reserves among existing major stablecoin issuers is only 66%-83%. Whichever bill is passed will force them to adjust their operating models. This regulatory game not only concerns the development of the U.S. stablecoin market but will also have far-reaching impacts on global cryptocurrency policy.
Do you support the strict risk control of the STABLE Act? Or do you favor the flexible regulation of the GENIUS Act? Leave your thoughts in the comments!
