Stablecoin Bill Gets Major Support in the US
The Trump administration has been a strong supporter of cryptocurrencies and the stablecoin bill. Now, bipartisan support for cryptocurrencies is growing, boosting the chances of the stablecoin bill passing.
According to Bloomberg , the Financial Services Committee will consider the stablecoin bill on April 2. The development highlights the growing influence of the cryptocurrency industry in Washington, DC, bolstered by bipartisan support from figures like Senator Kirsten Gillibrand and significant campaign contributions that have solidified industry allies.
The GENIUS Act has bipartisan support.
The GENIUS Act, which aims to regulate stablecoins and strengthen user protections, has received support from both Republicans and Democrats.
A key House committee is expected to vote in favor of the bill, signaling strong momentum for stablecoin legislation. The bill aims to regulate stablecoins and add more policies to protect investors.
Senators Bill Hagerty (R-TN) and Tim Scott (R-SC) introduced the stablecoin bill, which quickly gained support from both Republicans and Democrats. On March 13, the Senate Banking Committee voted to pass the Genius Act, with five Democrats joining the Republican majority in supporting the bill.
If the House passes the bill, stablecoin issuers would be able to choose between federal or state charters, depending on the size of their market. Foreign issuers would also need to comply with U.S. cryptocurrency rules on reserves, anti-money laundering, sanctions compliance, and liquidity.
“The reserve and anti-money laundering requirements are consistent with both RLSUD and USDC,” noted Jeremy Hogan, partner at law firm Hogan & Hogan.
Chairman French Hill, along with many crypto analysts and advocates, believes that the stablecoin market needs to be clearly regulated and regulated. He argues that regulating stablecoins will strengthen the dollar and improve the payment system.
Cryptocurrency companies have also promoted stablecoins as a way to promote financial inclusion and provide cheaper, faster transactions.
There are doubts
However, leading Democrats Maxine Waters and Senator Elizabeth Warren are concerned that the bill will not go far enough to protect investors. They also want to ban tech companies like Elon Musk’s X or Facebook’s Meta Platforms Inc. from issuing their own stablecoins.
While other critics are concerned that without FDIC deposit insurance for stablecoins, users could face huge losses if the token crashes or security issues arise.