US Lawmakers Near Agreement on Stablecoin Regulation
1min read US Representative Bryan steil recently discussed the two major stablecoin bills, the STABLE Act and the GENIUS Act, highlighting that the differences between them are minor and mainly textual. This discussion raises hopes for a unified regulatory framework for stablecoins in the near future. The STABLE Act was drafted by the House, while the Senate proposed the GENIUS Act.
On March 31, Steil stated that after a review, the STABLE Act is well-positioned to align with the GENIUS Act after a few more drafting rounds in the House and Senate. The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are providing technical support. Steil emphasized that about 20% of the differences between the two bills are mainly textual, not fundamental. The biggest differences involve requirements for international stablecoin issuers, state-level oversight of issuers, and some minor technical details.
Steil expressed optimism about working with Senate colleagues to pass the bill, stating, "At the end of the day, I think there’s recognition that we want to work with our Senate colleagues to get this across the line." This agreement is a positive sign, as both bills enjoy bipartisan support, which is crucial in the often-divided US political landscape.
Senators Bill hagerty, tim Scott, Cynthia Lummis, and Kirsten Gillibrand support the GENIUS (Guiding and Establishing National Innovation for US Stablecoins) Act. Meanwhile, the STABLE (Stablecoin Transparency and Accountability for a Better Ledger Economy) Act was drafted by House Financial Services Committee Chair French Hill and Representative Bryan Steil. Despite some differences, both bills aim to establish a legal framework for issuing stablecoins under federal or state supervision. For example, the GENIUS Act requires the Treasury Department to study algorithmic stablecoins, whereas the STABLE Act imposes a two-year ban on issuing them.
If passed, these bills could reshape the future of stablecoins and accelerate crypto adoption in the US. This would benefit both investors and everyday users. However, experts have voiced concerns that US lawmakers’ support for stablecoins could destabilize financial systems.
In summary, the discussion between Steil and journalist Eleanor Terrett highlights the potential for a unified regulatory framework for stablecoins in the US. The minor differences between the STABLE Act and the GENIUS Act suggest that a compromise is possible, which could have significant implications for the future of stablecoins and crypto adoption in the US. The bipartisan support for both bills is a positive sign, and the technical support from the SEC and CFTC is crucial for the drafting process. However, concerns from experts about the potential destabilization of financial systems should not be overlooked.
Ask Aime: What is the progress of the STABLE Act and the GENIUS Act regarding stablecoin regulations in the US?
