- According to sources, US House committee plans to push for landmark stablecoin legislation soon. The Financial Services panel will then review the bill on April 2.
So far, the Trump administration has been very vocal about its crypto support and the need for a stablecoin bill. However, bipartisan support for crypto is growing significantly, increasing the likelihood that the stablecoin bill will be fully approved.
The stablecoin bill has received support from both Republicans and Democrats
A key House Committee is likely to vote in favour of the GENIUS Act, which aims to regulate stablecoins and add more consumer protection policies.
Senators Bill Hagerty (R-TN) and Tim Scott (R-SC) first proposed the bill, which has quickly earned the support of both Republicans and Democrats.
On March 13, the Senate Banking Committee voted to advance the Genius Act, and five of the committee’s 11 Democrats joined the Republican majority to support the bill.
If the House approves the bill, stablecoin issuers will have the choice of both federal and state charters based on market capitalisation. Moreover, foreign issuers will be obligated to follow The nation’s protocols on reserves, anti-money laundering measures, sanctions compliance, and liquidity.
Jeremy Hogan, partner at the law firm Hogan & Hogan, even commented, “The reserve requirements and anti-money laundering requirements all fall neatly for RLSUD and USDC.”
Maxine Walters and Elizabeth Warren believe the bill fails to protect consumers adequately
Like many other analysts and crypto enthusiasts, Chairman French Hill believes the stablecoin market should be regulated. Hill claimed that a regulated stablecoin environment would yield a stronger dollar and improve payment systems.
Crypto firms that have presented their legislative agenda in the Capitol before have also consistently promoted stablecoins as a means to improving financial inclusion and a much cheaper and faster transaction option.
However, Maxine Walters, the top Democrat on the House committee, and Senator Elizabeth Warren of Massachusetts believe the bill will not protect consumers adequately. They also wanted a ban on tech companies like Elon Musk’s X or Meta Platforms Inc.’s Facebook, preventing them from issuing their own stablecoins.
Other critics have also raised concerns about the lack of stablecoin FDIC insurance, fearing huge losses for users if the token collapses.
