- On April 2 the U.S. House Financial Services Committee plans to examine the GENIUS Act because it represents a vital development in regulating stablecoins.
- The stablecoin bill has gained broad support from both parties at Congress as well as receiving endorsements from Senators Hagerty and Scott and major industry leaders.
- Critics like Maxine Waters and Elizabeth Warren argue the bill lacks sufficient consumer protections and advocate for restricting tech companies’ stablecoin issuance.
On April 2, the U.S. House Financial Services Committee plans to examine significant stablecoin legislation. President Donald Trump, together with crypto industry leaders, makes the legislation their top priority because it modernizes payment systems and deals with regulatory issues. Multiple reactions emerged from both legal officials and market experts regarding this decision.
Legislative Process and Bipartisan Support
Stablecoin legislation, titled the GENIUS Act, will come up for consideration on April 2. Senators Scott (R-SC) and Hagerty (R-TN) sponsored the bill, and it has been backed on a bipartisan basis in the Senate. The bill passed through the Senate Banking Committee on March 13 with Republican and a few Democratic votes.
According to Wu Blockchain’s tweet, the legislation remains a key priority in the U.S. Capitol. The bill grants stablecoin issuers the option of choosing between federal and state charters based on market capitalization. It also mandates that foreign issuers follow U.S. protocols on reserves, anti-money laundering measures, sanctions compliance, and liquidity requirements.
Market and Regulatory Perspectives
Committee Chairman French Hill from Arkansas stated that a regulated stablecoin market could modernize payment infrastructure and strengthen the U.S. dollar. He argued that effective regulation would expand financial services without unnecessary government intervention. Hill’s stance reflects the industry’s growing influence in shaping regulatory policy.
Some Democratic leaders, including Maxine Waters and Elizabeth Warren, criticized the bill for lacking sufficient consumer protection. They advocate for prohibiting tech companies from issuing stablecoins, a proposal that has sparked debate among lawmakers. Their concerns center on ensuring that stablecoin users receive robust safeguards similar to those in traditional financial systems.
Future Outlook for Stablecoin Issuance
If the House approves the legislation, stablecoin issuers will gain flexibility in selecting regulatory charters. The proposed law is expected to establish a framework that supports industry growth and enhances financial inclusion through efficient transactions. The measure aims to create a modern regulatory environment for digital assets.
Jeremy Hogan from Hogan & Hogan commented that the reserve and anti-money laundering requirements suit established stablecoins like RLSUD and USDC. Lawmakers and market experts now await the House vote, which could shape the future regulatory landscape for stablecoins and crypto markets.
