U.S. lawmakers introduce new bipartisan bills to regulate stablecoins, enforcing reserve requirements, banning tech giants from issuing them, and closing offshore loopholes. Learn how these proposed laws could reshape the stablecoin industry.
Bipartisan Efforts Seek Federal Oversight and Consumer Protections
Legislators in both the U.S. House and Senate have introduced new bills aimed at regulating stablecoins, establishing clear oversight, and enforcing strict compliance measures. The proposed legislation seeks to create a comprehensive federal framework, impose reserve requirements on issuers, and prevent large technology companies from entering the stablecoin market.
Senate’s GENIUS Act Proposes Federal Stablecoin Regulations
On February 4, 2025, Senators Bill Hagerty (R-TN), Tim Scott (R-SC), Kirsten Gillibrand (D-NY), and Cynthia Lummis (R-WY) introduced the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The bill defines payment stablecoins as digital assets pegged to a fixed monetary value and outlines licensing requirements for issuers.
The GENIUS Act includes federal reserve mandates for stablecoins, giving the Federal Reserve oversight of issuers managing over $10 billion in assets. Smaller issuers would be regulated at the state level, allowing flexibility while maintaining compliance. Supporters argue that the bill could improve payment efficiency, expand financial inclusion, and strengthen the U.S. dollar’s global position.
House Democrats Unveil a Separate Stablecoin Bill
On February 10, 2025, House Committee on Financial Services Democrats, led by Rep. Maxine Waters (D-CA), introduced a separate bipartisan bill focused on stablecoin regulation. Waters emphasized that the bill was the result of years of bipartisan negotiation and close collaboration with federal regulators.
This legislation establishes strict reserve requirements for both bank and non-bank stablecoin issuers while granting the Federal Reserve an expanded role in overseeing the industry. It bans major technology firms such as Facebook, Google, and X from issuing or owning stablecoin companies to prevent conflicts between financial and commercial activities.
Additionally, the bill closes offshore loopholes that have allowed foreign stablecoin issuers, including Tether, to operate without U.S. regulatory oversight. It also prohibits individuals convicted of financial crimes such as FTX founder Sam Bankman-Fried from holding executive positions or significant ownership in stablecoin issuers.
A Step Toward Clearer Crypto Regulations
The introduction of these bills signals growing momentum in Congress to establish a clear legal framework for stablecoins. Lawmakers aim to reduce risks for consumers, prevent market manipulation, and ensure that stablecoins operate within a well-defined regulatory structure.
As legislative discussions continue, the future of stablecoin regulation in the U.S. remains a critical issue for policymakers, investors, and digital asset companies. Regulatory clarity could pave the way for broader adoption of stablecoins while ensuring they are backed by secure financial systems.
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