Stablecoin Regulation Bill Nears Key Vote – But Not Everyone Is On Board

The Trump administration has been a strong supporter of cryptocurrency and stablecoin regulations. Now, for the first time, both Republicans and Democrats are coming together to push a stablecoin bill forward. With key lawmakers backing the effort and growing political momentum, the chances of the bill passing are higher than ever.

But not everyone is on board. Some lawmakers warn that the bill doesn’t go far enough to protect consumers, while others argue that regulating stablecoins could strengthen the U.S. financial system.

As the bill heads for a crucial vote, the debate is heating up – will stablecoins finally get the legal clarity they need, or will opposition derail the effort?

Key House Committee to Review Stablecoin Bill

A recent Bloomberg report confirms that the Financial Services Committee will review the stablecoin bill on April 2. This is a major step forward for the crypto industry in Washington, D.C., as support from both Republicans and Democrats strengthens its influence. Senator Kirsten Gillibrand and other key lawmakers have backed the bill, while campaign contributions from the crypto sector have also helped build political support.

The GENIUS Act Gains Momentum

The GENIUS Act aims to regulate stablecoins and improve consumer protections. It has strong support from both parties, and a key House committee is expected to vote in favor of it, increasing its chances of passing.

Senators Bill Hagerty (R-TN) and Tim Scott (R-SC) introduced the bill, which has quickly gained bipartisan backing. On March 13, the Senate Banking Committee advanced the legislation, with five Democrats joining Republicans in support.

What the Bill Means for Stablecoin Issuers

If approved, stablecoin issuers will have the option to choose between federal or state charters, depending on their market size. Foreign issuers must also comply with U.S. rules on reserves, anti-money laundering, sanctions, and liquidity.

Jeremy Hogan, a partner at Hogan & Hogan, noted, “The reserve requirements and anti-money laundering requirements all fall neatly for RLSUD and USDC.”

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Chairman French Hill, along with many crypto advocates, believes stablecoin regulations would benefit the financial system. He argues that clear rules could strengthen the U.S. dollar and improve payment systems. Many crypto firms also support stablecoins as a way to lower transaction costs and improve financial inclusion.

What Is the Opposition Worried About?

However, not everyone is on board. Representative Maxine Waters and Senator Elizabeth Warren argue that the bill doesn’t do enough to protect consumers. They also want a ban on tech companies—such as Elon Musk’s X and Meta Platforms Inc.—from creating their own stablecoins.

Other critics worry that without FDIC insurance, stablecoin users could face big losses if a token were to collapse.

Regulating stablecoins could bring clarity to the crypto industry, but with critics still raising red flags, this debate is far from over.

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