As of May 2025, the U.S. Congress is advancing two key stablecoin regulatory bills: the Senate's (Guiding and Establishing the U.S. Stablecoin National Innovation Act) (GENIUS Act) and the House's (Stablecoin Transparency and Accountability Act) (STABLE Act). These bills aim to establish a federal regulatory framework for payment stablecoins to ensure financial stability, consumer protection, and market transparency.
🏛️ Bill Overview
1. GENIUS Act (Senate)
Background: Proposed by Republican Senator Bill Hagerty from Tennessee, with joint support from Democratic Senator Kirsten Gillibrand of New York.
Main Content:
Requires stablecoin issuers to obtain licenses and adhere to strict capital reserve requirements.
Issuers must hold 100% reserve assets, including cash in dollars, deposits at Federal Reserve Banks, short-term U.S. Treasury securities, etc.
Monthly reports on reserve composition must be published and audited by an independent accounting firm, with written certification from the CEO and CFO.
Clearly prohibits misleading descriptions of stablecoins as guaranteed by the U.S. government or covered by federal deposit insurance.
Legislative Progress: On March 13, 2025, the Senate Banking Committee passed the bill with a vote of 18 in favor and 6 against.
2. STABLE Act (House of Representatives)
Background: Proposed by Representatives Bryan Steil and French Hill, aimed at strengthening regulation of payment stablecoins.
Main Content:
Emphasizes that stablecoin issuers must obtain licenses and adhere to strict capital reserve requirements.
Requires issuers to hold high-quality, readily liquid dollar assets and subject to ongoing review by the Federal Reserve.
Clearly states that stablecoins are not guaranteed by the U.S. government and not covered by federal deposit insurance, prohibiting misleading promotion.
Legislative Progress: In April 2025, the bill passed the House Financial Services Committee.
⚠️ Political Controversies and Challenges
Although both bills initially received some bipartisan support, significant disagreements have emerged in the recent legislative process in the Senate.
Divisions within the Democratic Party: Several Democratic senators, including Elizabeth Warren, have raised concerns about the bill, arguing that its provisions on anti-money laundering, national security, and accountability are insufficient.
Trump family's interest connections: The stablecoin USD1 launched by the Trump family's crypto company World Liberty Financial plans to collaborate with Abu Dhabi's MGX company for a $2 billion investment, raising concerns among Democrats about potential conflicts of interest.
Legislative outlook uncertain: Due to the controversies mentioned above, the Senate's bill progress has been hindered, and the final passage of the bill remains uncertain.
🔍 Future Outlook
The final versions of both bills may be adjusted during negotiations in both chambers of Congress to reach a consensus. Regardless of the final outcome, these legislative efforts indicate that the U.S. is actively seeking to establish regulatory standards for stablecoins in the global digital finance arena to maintain the stability of the financial system and protect consumer interests.