US House Passes Stablecoin Bill, Sends to Trump for Approval
The US House of Representatives has passed a new bill designed to regulate stablecoin, a type of cryptocurrency tied to the US dollar. Known as the Genius Act, the bill will now head to President Donald Trump, who is expected to sign it into law. This marks a significant moment for the cryptocurrency industry, which has been advocating for federal regulations for years.
Stablecoins to Face New Federal Rules
Stablecoins are digital currencies designed to maintain a fixed value, usually equal to one US dollar. These coins are widely used by crypto traders to transfer funds quickly and efficiently between different tokens. The Genius Act, which received bipartisan support in the House, will require stablecoin issuers to hold reserves backed by liquid assets like US dollars and short-term Treasury bills. Issuers must also publicly disclose details of their reserves monthly.
This move aims to increase transparency and build public trust in stablecoins. Supporters argue that clear regulations could lead to wider adoption of stablecoins in daily payments and financial services.
Crypto Industry Pushes for Clear Guidelines
Alongside the stablecoin bill, the House also passed another measure called the Clarity Act. This separate bill sets a broader regulatory framework for cryptocurrencies and digital assets. The Clarity Act will now move to the Senate for further debate.
The crypto industry has invested heavily in recent years to push for clearer regulations. More than $119 million was spent supporting pro-crypto candidates in the last election cycle. Industry leaders believe these efforts could help make cryptocurrencies a regular part of the financial system.
Last year, a similar stablecoin bill was passed by the House but stalled in the Senate. Now, with bipartisan backing, supporters are optimistic about progress.
Trump’s Role in Crypto Policy
President Trump has played an active role in shaping US crypto policy. During his campaign, he received significant financial backing from the crypto sector. He has also launched his own crypto projects, including a meme coin called $TRUMP and a business named World Liberty Financial.
Despite concerns over potential conflicts of interest, the White House insists that Trump’s assets are held in a trust controlled by his children. Nevertheless, tensions in Congress remain high, with some Democrats expressing frustration over Trump’s personal involvement in the crypto space.
If President Trump signs the Genius Act into law, it will set the first clear federal regulations for stablecoins, a major step for the digital asset market.
with inputs from Reuters