The Trump administration has been a strong advocate for crypto and a stablecoin bill. But now, bipartisan support for cryptocurrency is growing, boosting the chances of the stablecoin bill passing.
As per a latest Bloomberg report, the Financial Services Committee will review the stablecoin bill on April 2. This development highlights the growing influence of the cryptocurrency industry in Washington, D.C., bolstered by bipartisan support from figures like Senator Kirsten Gillibrand and significant campaign contributions that have strengthened industry allies.
GENIUS Act Gets Bipartisan Support
The GENIUS Act, which aims to regulate stablecoins and enhance consumer protections, has garnered support from both Republicans and Democrats. A key House Committee is expected to vote in favor of the bill, signaling strong momentum for its approval. The act aims to regulate stablecoins and add more consumer protection policies.
Senators Bill Hagerty (R-TN) and Tim Scott (R-SC) introduced the bill, which has quickly gained support from both Republicans and Democrats. On March 13, the Senate Banking Committee voted to move the Genius Act forward, with five Democrats joining the Republican majority in backing it.
If the House approves the bill, stablecoin issuers can choose between federal or state charters, depending on their market size. Foreign issuers will also need to follow U.S. rules on reserves, anti-money laundering, and sanctions compliance and liwuiduty.
Jeremy Hogan, partner at the law firm Hogan & Hogan noted, “The reserve requirements and anti-money laundering requirements all fall neatly for RLSUD and USDC.”
Chairman French Hill, along with many analysts and crypto supporters, believes the stablecoin market needs regulation. He argues that regulating stablecoins would strengthen the dollar and improve payment systems. Crypto firms have also pushed for stablecoins as a way to boost financial inclusion and offer cheaper, faster transactions.
Criticisms Prevail
However, Top Democrat Maxine Waters and Senator Elizabeth Warren worry that the bill doesn’t do enough to protect consumers. Besides, 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.
While other critics are concerned that without FDIC insurance for stablecoins, users could face big losses if a token crashes.
