U.S. House Approves Stablecoin Bill, Sends to Trump for Signature

The U.S. House of Representatives passed a significant bill on Thursday, establishing a regulatory framework for stablecoins, which are cryptocurrency tokens pegged to the U.S. dollar. The legislation, known as the Genius Act, is set to be sent to President Donald Trump, who is anticipated to sign it into law. This development marks a pivotal moment for the digital asset industry, which has advocated for federal regulations for years.

The vote demonstrated strong bipartisan support, with members from both parties collaborating to create a foundation for these digital currencies. Alongside the stablecoin bill, lawmakers approved the Clarity Act, which aims to develop further regulations for the broader cryptocurrency market. This bill will now proceed to the Senate for additional consideration.

Stablecoins are designed to maintain a consistent value, usually pegged at a 1:1 ratio with the U.S. dollar. Their utility has surged in recent years as traders increasingly use them to facilitate transactions between various cryptocurrencies. Proponents argue that these digital tokens can enable instantaneous payments, potentially transforming financial transactions.

If the Genius Act is enacted, it would mandate that stablecoins be backed by liquid assets, including U.S. dollars and short-term Treasury bills. Additionally, issuers would be required to disclose the composition of their reserves on a monthly basis, enhancing transparency within the market.

The push for regulatory clarity has been a longstanding goal for the cryptocurrency sector. Advocates assert that a clear framework could facilitate the wider acceptance of stablecoins and other digital assets. Notably, the industry invested over $119 million to support pro-cryptocurrency congressional candidates in the previous election cycle, seeking to emphasize the bipartisan nature of the issue.

In 2022, the House of Representatives passed a stablecoin bill; however, the Senate, which was under Democratic control at the time, did not advance it. President Trump has expressed intentions to overhaul U.S. cryptocurrency policies, having courted industry funding during his presidential campaign.

Tensions surrounding Trump’s personal crypto ventures have at times threatened to complicate legislative efforts. His initiatives include a meme coin known as $TRUMP, launched in January 2023, and a business called World Liberty Financial, which is partially owned by him. The White House has stated that there are no conflicts of interest concerning Trump’s assets, as they are held in a trust managed by his children.

As the regulatory landscape for cryptocurrency evolves, the passage of the Genius Act may signal a new era for stablecoins in the United States, potentially paving the way for broader acceptance and use of digital currencies in everyday transactions.