House Backs Senate's Stablecoin Bill, Paving Way for Trump's Crypto Vision
Congress Unites: House Backs Senate's Stablecoin Bill, Paving Way for Trump's Crypto Vision
In a significant legislative maneuver, the U.S. House of Representatives is set to abandon its own stablecoin legislation in favor of the Senate's version, the GENIUS Act. This move, strongly influenced by President Donald Trump's push for swift crypto regulation, marks a pivotal moment during "Crypto Week" on Capitol Hill, aiming to deliver the first major federal law for the U.S. crypto space.
A Unified Front for Stablecoin Regulation
The House's decision to adopt the Senate's Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act signifies a rare alignment between the two chambers on digital asset policy. This strategic shift, confirmed by sources familiar with House planning, bypasses the usual process of reconciling differing bills and aims to expedite the legislation to President Trump's desk.
- The GENIUS Act, championed by Senator Bill Hagerty, focuses on regulating stablecoin issuers like Tether and Circle.
- This move effectively shelves the House's own Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act.
- President Trump has actively urged the House to pass the Senate's bill without amendments, seeking to fulfill his ambitious August deadline for crypto legislation.
Broader Crypto Legislative Agenda
While the stablecoin bill takes center stage, Congress is also advancing other key pieces of crypto legislation. The Digital Asset Market Clarity Act, designed to establish federal regulations for the broader U.S. crypto markets, remains a high priority.
- The Clarity Act has cleared relevant House committees and awaits a full House vote before moving to the Senate.
- Senator Tim Scott, Chairman of the Senate Banking Committee, views the Clarity Act as a "strong template" for market structure legislation.
- Industry leaders, including Ripple CEO Brad Garlinghouse, have advocated for market structure legislation, emphasizing its potential to boost U.S. competitiveness and financial efficiency.
Addressing CBDCs and Political Dynamics
"Crypto Week" also includes discussions on central bank digital currencies (CBDCs), with the Anti-CBDC Surveillance State Act aiming to prevent the Federal Reserve from issuing a U.S. CBDC. This reflects a shared concern among the crypto industry and congressional Republicans regarding potential government oversight of citizens' finances.
However, the legislative path is not without its challenges. While the GENIUS Act passed the Senate with strong bipartisan support (68-30), some influential Democrats, like Senator Elizabeth Warren, express reservations about market structure legislation, citing concerns over consumer protection and national security. Furthermore, President Trump's deep ties to the crypto industry have drawn criticism from Democrats, who allege potential conflicts of interest and are pushing for provisions to ban senior government officials from such connections.
What's Next?
The GENIUS Act is widely expected to pass the House, potentially becoming the first major U.S. law regulating the crypto space. The focus will then shift to the Senate's consideration of the Clarity Act, which, if passed, would mark another significant step towards comprehensive crypto regulation in the United States.