As the two chambers of Congress proceed with their stablecoin bills, the White House is signaling support for one proposal. Both Houses are barreling toward tying up loose legislative ends to table a final version of President Donald Trump’s Desk.
The GENIUS Act Gathers Significant Steam
According to reports, a robust stablecoin regulation is coming to the US in the coming months. The US Senate is deliberating over the Guiding and Establishing National Innovation For US Stablecoins (GENIUS Act), inching forward to a full vote.
Following the US Senate Banking Committee’s approval, the GENIUS Act is ready for a full vote on the floor of the Upper Chamber. The legislation, presented by Senator Bill Hagerty seeks to provide a a robust regulatory framework for stablecoins in the US.
A quick scan into the wording of the bill reveals provisions for stablecoin issuers to receive approvals from federal and state regulators. There is a requirement for issuers to maintain reserves on a 1:1 basis using acceptable assets.
House Of Reps Inch Forward With STABLE Act
In the Lower Chamber, the Stablecoin Transparency And Accountability for a Better Ledger Economy (STABLE Act) is scaling legislative hurdles. The STABLE Act is poised for markup by members of the House Financial Services Committee in early April.
Akin to GENIUS, the STABLE Act provides for equivalent reserves with full backing while pushing for stringent audits akin to banking institutions.
While GENIUS and STABLE Acts share several similarities, there are key differences in their design. For starters, the STABLE Act seeks to impose the same federal banking regulation on stablecoin issuers while GENIUS proceeds with a tiered approach. President Trump has urged Congress to pass stablecoin legislation in the coming weeks to match new policy direction.
Which One Will The White House Favor
Insiders say the White House is leaning toward the GENIUS Act over the STABLE Act. According to lobbyists, the White House is eyeing the Senate’s version of a stablecoin regulation. For starters, the GENIUS Act makes provision for smaller stablecoin issuers to operate at the state level in line with the new administration’s stance to promote innovation in the space.
Executive Director of the Presidential Working Group on Digital Assets Bo Hines is eyeing stablecoin legislation on Trump’s desk in two months. To meet the deadline, the GENIUS Act is far ahead of the STABLE Act in the legislative process.
However, there remains the possibility of a Conference Committee from both Houses to create a single version of the stablecoin bills. Lobbyists say a Conference Committee will delay the two-month timeline targeted by the White House. There is optimism that if the GENIUS Act receives 70 votes in the Senate, the House of Representatives may adopt the Senate’s version of a stablecoin legislation.
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