Momentum is building in Washington as both the House and Senate released updated drafts of their stablecoin bills in March 2025 — the STABLE Act in the House and the GENIUS Act in the Senate.
2025 is proving to be a redemptive year for digital assets enthusiasts, from crypto CEOs to DeFi die-hards. After a sluggish 2023 and a regulatory limbo throughout 2024, sound legislation could finally position the U.S. to catch up with global leaders like the EU (post-MiCA) and Singapore. The goal now: clarity, confidence, and credibility.
Key Changes in the GENIUS Act (Updated March 2025 Draft)
Tightens the definition of stablecoins to ease banking sector concerns.
Bans interest-bearing stablecoins (yield), restricts network dominance, and enforces stricter AML rules.
Limits wholesale use of stablecoins to issuers approved by federal regulators.
Introduces a home state/host state model similar to insurance regulation, preempting inconsistent state rules.
Expands federal oversight while requiring states to align with core regulatory principles.
Key Changes in the STABLE Act (Updated House Draft, March 2025)
Strengthens state authority while preserving federal emergency intervention powers.
Broadens acceptable collateral to include money market funds and foreign reserves.
Removes the previously mandated study on algorithmic stablecoins but retains the two-year ban.
Adds enhanced cybersecurity requirements for all licensed stablecoin issuers.
Congressional Hearing Takeaways (House Financial Services Committee – Held March 18, 2025)
At the latest hearing, lawmakers clashed over extraterritorial enforcement. Several members called out Tether’s operations in El Salvador as an example of regulatory arbitrage and argued that U.S. agencies need greater authority to supervise foreign-based issuers that impact domestic markets.
Others proposed a federal payments charter to reduce compliance fragmentation and offer a unified regulatory pathway for digital payment firms. Financial stability emerged as a central concern: some feared that stablecoins, if left unchecked, could drain deposits from regional banks, destabilize money markets, or pose systemic risk without proper reserve backing or insurance.
Privacy vs. compliance also sparked debate. Advocates for self-custody emphasized user autonomy and digital cash principles, while others pushed for robust transaction monitoring, citing concerns over illicit finance and national security.
What’s Next?
Divisions remain, but there is growing consensus that the status quo is no longer sustainable. The digital asset ecosystem is evolving — with or without Congressional action — and lawmakers now understand that the U.S. cannot afford to fall further behind.
With bipartisan interest and industry pressure mounting, stablecoin regulation is no longer theoretical. It’s an active legislative front. Expect further markups, Senate–House reconciliation efforts, and more hearings as we move deeper into Q2 2025.
The next few months could determine how the U.S. shapes the infrastructure of programmable money for the next decade.
Momentum is building in Washington as both the House and Senate released updated drafts of their stablecoin bills in March 2025 — the STABLE Act in the House and the GENIUS Act in the Senate.
2025 is proving to be a redemptive year for digital assets enthusiasts, from crypto CEOs to DeFi die-hards. After a sluggish 2023 and a regulatory limbo throughout 2024, sound legislation could finally position the U.S. to catch up with global leaders like the EU (post-MiCA) and Singapore. The goal now: clarity, confidence, and credibility.
Key Changes in the GENIUS Act (Updated March 2025 Draft)
Tightens the definition of stablecoins to ease banking sector concerns.
Bans interest-bearing stablecoins (yield), restricts network dominance, and enforces stricter AML rules.
Limits wholesale use of stablecoins to issuers approved by federal regulators.
Introduces a home state/host state model similar to insurance regulation, preempting inconsistent state rules.
Expands federal oversight while requiring states to align with core regulatory principles.
Key Changes in the STABLE Act (Updated House Draft, March 2025)
Strengthens state authority while preserving federal emergency intervention powers.
Broadens acceptable collateral to include money market funds and foreign reserves.
Removes the previously mandated study on algorithmic stablecoins but retains the two-year ban.
Adds enhanced cybersecurity requirements for all licensed stablecoin issuers.
Congressional Hearing Takeaways (House Financial Services Committee – Held March 18, 2025)
At the latest hearing, lawmakers clashed over extraterritorial enforcement. Several members called out Tether’s operations in El Salvador as an example of regulatory arbitrage and argued that U.S. agencies need greater authority to supervise foreign-based issuers that impact domestic markets.
Others proposed a federal payments charter to reduce compliance fragmentation and offer a unified regulatory pathway for digital payment firms. Financial stability emerged as a central concern: some feared that stablecoins, if left unchecked, could drain deposits from regional banks, destabilize money markets, or pose systemic risk without proper reserve backing or insurance.
Privacy vs. compliance also sparked debate. Advocates for self-custody emphasized user autonomy and digital cash principles, while others pushed for robust transaction monitoring, citing concerns over illicit finance and national security.
What’s Next?
Divisions remain, but there is growing consensus that the status quo is no longer sustainable. The digital asset ecosystem is evolving — with or without Congressional action — and lawmakers now understand that the U.S. cannot afford to fall further behind.
With bipartisan interest and industry pressure mounting, stablecoin regulation is no longer theoretical. It’s an active legislative front. Expect further markups, Senate–House reconciliation efforts, and more hearings as we move deeper into Q2 2025.
The next few months could determine how the U.S. shapes the infrastructure of programmable money for the next decade.
