- US House Committee Set to Push for Landmark Stablecoin Legislation The Financial Services panel will review the bill on April 2.
Reports indicate that the US House Committee is gearing up to introduce groundbreaking legislation aimed at regulating stablecoins. The bill is expected to be reviewed by the Financial Services panel on April 2.
Bipartisan Support for Stablecoin Bill
The Trump administration has expressed strong support for cryptocurrencies and emphasized the need for stablecoin regulation. With bipartisan backing for crypto initiatives on the rise, there is growing optimism that the stablecoin bill will receive full approval.
The proposed GENIUS Act, designed to regulate stablecoins and enhance consumer protection measures, has garnered support from both Republicans and Democrats. Senators Bill Hagerty and Tim Scott initially introduced the bill, which has gained bipartisan traction.
The Senate Banking Committee recently voted to advance the Genius Act, with a significant number of Democrats joining the Republican majority in endorsing the legislation.
If passed by the House, stablecoin issuers will have the option to obtain federal or state charters based on their market capitalization. Additionally, foreign issuers will be required to adhere to US regulations concerning reserves, anti-money laundering practices, sanctions compliance, and liquidity.
Legal expert Jeremy Hogan of Hogan & Hogan remarked, “The reserve requirements and anti-money laundering obligations align perfectly for RLSUD and USDC.”
Concerns Raised by Critics
While advocates tout the benefits of regulating the stablecoin market, critics such as Maxine Waters and Elizabeth Warren have expressed reservations about the bill’s consumer protection provisions. They have called for a ban on tech giants like Elon Musk’s X and Meta Platforms Inc.’s Facebook from issuing their own stablecoins.
Others have voiced worries about the absence of FDIC insurance for stablecoins, fearing potential losses for users in the event of a collapse.
Chairman French Hill emphasized the importance of regulating the stablecoin sector, asserting that a regulated environment would bolster the dollar and enhance payment systems. Proponents of stablecoins view them as a tool for promoting financial inclusion and facilitating faster, more cost-effective transactions.