Stablecoin News – U.S. Republican leaders announced plans for a mid-July “Crypto Week” in the House of Representatives, aiming to vote on the GENIUS Act, a landmark bill to regulate U.S. dollar-pegged stablecoins. Having passed the Senate with a 68-30 bipartisan vote in June, the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 establishes a federal framework requiring stablecoin issuers to
- back tokens 1:1 with liquid assets like cash or U.S. Treasuries,
- publish monthly reserve audits, and
- comply with anti-money laundering (AML) rules.
The House’s vote is a critical step toward final approval, potentially sending the bill to President Donald Trump’s desk by August.
The GENIUS Act aims to legitimize stablecoins, which account for over 60% of crypto transactions, by providing regulatory clarity for issuers like Tether (USDT) and Circle (USDC).
Proponents, including Senator Bill Hagerty, argue it strengthens the U.S. dollar’s global dominance and fosters financial innovation. “This bill positions the U.S. as a leader in digital finance,” Hagerty said, emphasizing its role in enabling banks, fintechs, and retailers to issue stablecoins.
However, critics like Senator Elizabeth Warren warn that the bill lacks robust consumer protections and fails to address conflicts of interest, particularly citing Trump’s ties to World Liberty Financial’s USD1 stablecoin.
The House’s version, the STABLE Act, shares similar goals but differs in regulatory oversight, splitting authority among the Federal Reserve and other agencies, unlike the Senate’s Treasury-centric approach.
Reconciling these differences could delay passage, but bipartisan support, bolstered by the crypto industry’s $250 million in 2024 election spending, suggests momentum.
The bill’s restrictions on non-financial tech giants issuing stablecoins aim to prevent market monopolies, though companies like Walmart and Amazon are reportedly exploring compliant stablecoin projects.
Stablecoins, with a $250 billion market cap, are pivotal for digital payments and DeFi, offering stability absent in volatile cryptocurrencies like Bitcoin.
The GENIUS Act’s passage could drive mainstream adoption, but concerns about financial stability and illicit use persist, with TRM Labs noting 1% of stablecoin activity involves illicit transactions like ransomware. As the House prepares for its vote, the outcome will shape the future of digital finance in the U.S.
