New legislative initiatives are underway in the U.S. focusing on stablecoin regulation, aiming to create a more stable and secure environment for issuers and users.
GENIUS Act: Key Provisions
The Senate is advancing the GENIUS Act (Guiding and Establishing National Innovation For US Stablecoins), which requires stablecoin issuers to undergo oversight at both federal and state levels. Furthermore, issuers must maintain asset reserves at a 1:1 ratio to ensure financial stability.
Key Features of the STABLE Act
In the House of Representatives, the STABLE Act (Stablecoin Transparency And Accountability for a Better Ledger Economy) is being advanced. Similar to the GENIUS Act, it enforces reserve and compliance stipulations for stablecoin issuers and looks to integrate federal banking regulations. The House Financial Services Committee is expected to evaluate this proposal.
White House Support and Next Steps
The White House shows a preference for the GENIUS Act, viewing it as a more innovative framework that could benefit smaller state-level issuers. Although similar in components, the two bills diverge significantly in approaches. President Trump is calling for expedited congressional action on this legislation. Regulations are predicted to be finalized and presented within two months.
While the timing and specifics of the proposed regulations remain uncertain, the development of the GENIUS and STABLE acts underscores the need for a structured regulatory approach to ensure the stablecoin market operates efficiently and securely.
