While Congress has historically dragged its feet on crypto regulation, 2025 is shaping up differently. Both chambers are racing to push through extensive stablecoin legislation, with the House Financial Services Committee’s STABLE Act and Senate Banking Committee’s GENIUS Act leading the charge.
And guess who’s cheering from the sidelines? None other than the Trump administration, treating crypto regulation like it’s the hottest ticket in town. Issuers must maintain one-to-one reserves backing their stablecoins with highly liquid assets.
The bills are pretty straightforward – they’re all about those “payment stablecoins” pegged to the dollar. Banks can issue them. Non-banks can issue them. Even your cousin’s startup could theoretically get in on the action, provided they jump through the right hoops. The rapidly expanding market has reached a staggering market cap of $230 billion and continues to grow.
Payment stablecoins are open season – from big banks to basement startups, anyone can play if they follow the rules.
The catch? They’ve got to back these digital dollars with real assets and follow some basic rules. Simple stuff, really.
But here’s where it gets interesting. The GENIUS Act says state regulators can handle the smaller players – those with less than $10 billion in stablecoins floating around. Cross that threshold, and suddenly the feds want a word. It’s like a regulatory version of “you must be this tall to ride.”
The thorny issue of foreign issuers has lawmakers tied in knots. Some want to slam the door shut, while others are pushing for a more nuanced approach. National security concerns are driving much of the debate, with money laundering fears keeping everyone up at night.
Critics aren’t entirely sold. They’re demanding better consumer protections and stricter rules about what counts as proper reserves. Advocacy groups are waving red flags about illicit finance, while others worry the whole system might be a house of cards waiting to collapse.
The clock is ticking, with both chambers aiming to get something to the president’s desk before the August recess. With bipartisan support and the White House’s blessing, it looks like crypto’s wild west days might finally be coming to an end. Well, at least for stablecoins.
