President Trump urged the House of Representatives to quickly pass a bill aimed at regulating stablecoins, following its earlier approval by the Senate earlier this week. The President took to Truth Social to call for the swift passage of the bill without delay or additional conditions, emphasizing the importance of demonstrating American ingenuity to the world in utilizing digital assets for unprecedented success.
In a post on Truth Social, President Trump wrote, “Digital assets represent the future, and our country will lead in this field. We are talking about massive investments and major innovations. I hope that the House will act at lightning speed to pass a ‘clean’ and ‘genius’ act.”
The United States Stablecoin National Innovation and Establishment Act, also known as the “GENIUS Act,” was approved by the Senate on Tuesday with 68 votes to 30, with 18 Democratic senators joining the majority of Republican senators to pass the bill.
Stablecoins are cryptocurrencies pegged to fiat currencies like the US dollar, known for their price stability, widely used for payments, hedging, and trading. Currently, leading stablecoins in the market include Tether (USDT) and Circle’s USDC, with a combined market value of $228 billion.
French Hill, Chairman of the House Financial Services Committee and a Republican, expressed his commitment to work with colleagues in the House to ensure the smooth passage of the bill, bringing much-needed clarity and protection to the digital asset ecosystem.
This marks a milestone for the cryptocurrency industry, as it is the first significant digital asset legislation to pass in the Senate.
Supporters believe that the “GENIUS Act” will not only promote the adoption and innovation of stablecoins but also attract more users to enter the digital dollar asset market.
Senator Bill Hagerty of the Republican Party from Tennessee emphasized the importance of this regulatory framework in maintaining America’s global competitiveness and the dominant position of the US dollar. He highlighted that with proper regulations, stablecoin issuers may become major holders of US national debt in the coming years, further solidifying the US dollar’s status as a global reserve currency.
However, the bill has also raised concerns. Senator Elizabeth Warren warned that allowing private platforms to issue stablecoins could create loopholes for sanctions evasion and illicit fund flows, posing potential risks to the financial system. She called for concurrent strengthening of anti-money laundering, law enforcement, and regulatory mechanisms during the legislative process.
President Trump has long shown strong support for the cryptocurrency industry, making cryptocurrency legislation a priority for his administration. He has reiterated his hope to pass two key cryptocurrency bills in Congress before its August recess.
In addition to the stablecoin bill, the White House and Republican lawmakers are also attempting to pass another piece of legislation that would distribute other regulatory authorities in the digital asset market to two financial regulatory bodies.
Currently, the House Financial Services Committee has advanced its own stablecoin bill, the STABLE Act, and a market structure bill, the Digital Asset Market Clarity Act. The market structure legislation involves two distinct areas of jurisdiction, which were approved by the House Agriculture Committee last week.
This article was sourced from reports by “The Hill.”