#USStablecoinBill
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🏛️ GENIUS Act: Senate Turmoil
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, co-sponsored by Senators Bill Hagerty (R-TN) and Kirsten Gillibrand (D-NY), aims to establish a federal regulatory framework for stablecoins. It passed the Senate Banking Committee in March with an 18–6 vote, including support from five Democrats .
However, momentum has stalled. Over the weekend, nine Senate Democrats—including Ruben Gallego, Mark Warner, and Lisa Blunt Rochester—reversed their support, citing concerns over anti-money laundering provisions and national security risks . Senator Elizabeth Warren has also criticized the bill for lacking consumer protections and potentially enabling tech monopolies .
A significant point of contention is the Trump family's involvement in the crypto space. Their firm, World Liberty Financial, recently launched the USD1 stablecoin, backed by a $2 billion investment from Abu Dhabi. This has raised ethical concerns among Democrats about potential conflicts of interest .
Despite these challenges, Senate Majority Leader John Thune is pushing for a floor vote this week, though the bill's prospects remain uncertain .
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🏛️ STABLE Act: House Progress
In the House, the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act (H.R. 2392), introduced by Representatives French Hill (R-AR) and Bryan Steil (R-WI), has advanced through the Financial Services Committee . The bill proposes:
100% reserve backing for stablecoins with U.S. dollars or short-term treasuries.
A two-year moratorium on new algorithmic stablecoins.
Licensing requirements for issuers under federal banking regulators.
President Trump has expressed support for both bills, aiming to sign them into law before the August recess .
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📉 Market Implications
The legislative uncertainty is impacting the stablecoin market. Major stablecoins like USDT and DAI are maintaining their pegs, but the political turmoil is causing volatility and investor caution.