💳 Stripe's Bridge Partners with Visa to Enable Stablecoin-Backed Cards. The blockbuster partnership could allow you to spend stablecoin balances with your credit card.
🏦 BlackRock May Tokenize Shares of $150B Treasury Trust Money Market Fund. The investment firm continues to wander deeper onchain.
🅿️ SEC Kills Investigation into PayPal's PYUSD. The SEC is continuing to abandon its investigations into a host of companies involved with the crypto industry.
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Daily Market Snapshot: April's month of whipsaw crypto price action is leaving us with $1800 ETH and $94K BTC, down 1.6% and up 14.4% on the month respectively.
It’s 2025 and stablecoins are stepping into the spotlight as a key player in the evolution of global finance. The U.S. is finally taking concrete steps to define the future of these digital dollars with two fittingly named acts.
The GENIUS Act and the STABLE Act, two significant pieces of legislation, are currently navigating their way through Congress, promising to establish a clear and comprehensive legal framework.
Since not all of us have a perfect grasp on how regulation moves its way through the American legal system, today we’re breaking down where things stand, what's at stake, the current status of these bills, and what the next year might hold for stablecoin legislation. 👇
🧐 The Proposed Legislation
First, what are these two acts and what has happened to them thus far?
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), introduced in February 2025 by a bipartisan group of senators, is centered on federal licensing for stablecoin issuers.
Key provisions include:
Federal licensing for stablecoin issuers
Requirement for full backing by U.S. dollars or U.S. Treasuries
Mandates for regular audits, Anti-Money Laundering (AML) compliance, and public reserve disclosures
This bill has already passed out of the Senate Banking Committee with strong bipartisan support, securing an 18–6 vote.
On the other side, the STABLE Act (Stablecoin Transparency and Accountability for a Better Ledger Economy) has passed the House Financial Services Committee with a 32–17 vote.
Key focuses include:
Consumer protection through clear redemption rights
Emphasis on reserve transparency
Stronger oversight mechanisms
Application to both domestic and international stablecoin issuers operating within the United States
Key Areas of Discussion
Several crucial points are under debate as these bills progress.
One significant area is the regulation of algorithmic stablecoins – remember Terra Luna? Congress is proceeding cautiously, seeking further research before determining how to best regulate non-collateralized stablecoins.
The GENIUS Act outright prohibits algorithmic stablecoins.
The STABLE Act proposes a two-year moratorium on new algorithmic stablecoins.
Another key focus is on foreign stablecoin issuers. There's a growing consensus to restrict the operation of foreign stablecoins within the U.S. unless they register and fully comply with U.S. regulations. This could significantly reshape the competitive landscape of the global stablecoin market.
Finally, policymakers are increasingly aware of the potential for stablecoins, if regulated effectively, to significantly boost the global adoption of the U.S. dollar. This recognition underscores the strategic importance of getting stablecoin regulation right.
Now that we know what’s being discussed and how far along these acts have come, what comes next?
Navigating the Legislative Path
To become law in the United States, a bill must first:
Pass one chamber of Congress (either the House or the Senate)
Pass the other chamber, potentially with amendments
Undergo a reconciliation process if the House and Senate versions differ
Receive the President's signature to become law
Currently, the STABLE Act has successfully passed through the House Financial Services Committee and is awaiting a vote by the full House.
Similarly, the GENIUS Act has cleared the Senate Banking Committee and is now awaiting a vote by the entire Senate.
The GENIUS Act is currently further along in the legislative process because it was introduced earlier and passed out of the Senate Banking Committee before the STABLE Act cleared the House Financial Services Committee.
Looking ahead, the estimated timeline suggests that:
May 2025: Senate Majority Leader John Thune privately told Republican senators Tuesday that the GENIUS Act will be voted on before May 31
Summer 2025: The STABLE Act is likely to be voted on by the full House and Senate.
Late Summer to Early Fall 2025: Congress would then need to reconcile any differences between the two versions, potentially leading to a final compromise bill.
Fall 2025 (likely September to October): If this process proceeds smoothly, the final bill could be passed by both chambers and sent to the President for signing.
End of 2025:If all goes according to plan, comprehensive stablecoin regulation could be in place before the end of the year.
Potential Roadblocks
As is often the case in American politics, we could hit some roadblocks and miss the deadlines listed above. Several factors could potentially slow down the legislative process:
The approaching election cycle could divert Congressional attention and priorities.
Ongoing lobbying efforts by various players within the crypto industry, particularly concerning specific details, could lead to delays.
The debate on whether to pursue standalone stablecoin legislation or combine it with broader market structure legislation introduces another layer of uncertainty.
Resistance from some Democrats and concerns from banks regarding potential deposit outflows could necessitate further negotiations.
The Bigger Picture
The United States is demonstrably moving towards establishing a clear legal framework for stablecoins and we should all be super bullish. Oh, how far we’ve come since Gary Gensler was constantly suing us!
If both the GENIUS and STABLE Acts are enacted, stablecoins are poised to become a fully integrated part of the American financial system, operating under a regime of licensing, protection, and enhanced capabilities.
This represents a unique opportunity:
If navigated successfully, stablecoins could solidify the U.S. dollar's dominance in the digital age.
However, missteps could allow other nations with more defined regulatory environments to take the lead in the burgeoning field of digital finance.
Bankless Nation, make no mistake, these stablecoin bills could be foundational infrastructure for the future of crypto.
We'll keep you up to date on where these acts head next.
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Not financial or tax advice. Bankless content is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.
Disclosure. From time to time, we may add links in this newsletter to products we use. We may receive a commission if you make a purchase through one of these links. Additionally, the Bankless team holds crypto assets.
