Efforts to regulate stablecoins in the United States are gaining momentum as the Senate edges closer to a pivotal vote on its stablecoin legislation. However, significant differences between the Senate’s proposal and a similar one in the House of Representatives must be resolved before any new laws can be enacted, according to Representative French Hill. Speaking at an Atlantic Council event, Hill emphasized the need for alignment, stating, “The bills are substantially similar… [but] differences… need to be rectified and clarified.”
Key Differences in the Bill
The House’s version of the bill includes more stringent requirements for the “reciprocity” of international regulations concerning foreign issuers of stablecoins, a point of contention with the Senate’s approach. Hill explained that the House bill requires either full U.S. registration or recognition of a foreign jurisdiction’s regulatory regime as substantially similar. This issue is closely tied to Tether’s USDT, a heavyweight in the global stablecoin arena.
Another major divergence lies in how non-financial companies are allowed to issue stablecoins. The House plan permits these companies to do so under the supervision of the Office of the Comptroller of the Currency. Meanwhile, the Senate version proposes a ban on certain public companies from issuing tokens, reflecting worries about the encroachment of tech giants into financial sectors—a concern echoed by some Democrats.
Historical Stalemate and Recent Progress
The path to stablecoin regulation has been anything but smooth. Hill noted the Senate’s historical paralysis over crypto legislation, but he acknowledged the recent progress marked by the Senate’s movement on the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. “The Senate’s actions are really important to moving the effort forward,” he remarked. This shift comes despite previous delays caused by Democratic objections over insufficient safeguards against illicit activities and concerns about conflicts of interest involving public officials. For more on the Senate’s recent actions, see U.S. Senate Moves Toward Action on Stablecoin Bill.
Interestingly, Hill reflected on the narrative that stablecoin legislation might be easier to pass than comprehensive crypto market oversight. The House has previously managed to pass broader crypto market regulations while hitting snags on stablecoin specifics. “It’s a complicated process, but we’re optimistic,” Hill stated, expressing hope for the House to advance the legislation in line with former President Trump’s promise to have it ready for signature by the August congressional recess.
The Road Ahead
For any stablecoin regulation to become law, identical versions must be passed by both the Senate and the House before reaching the president’s desk. If the Senate finalizes its stablecoin bill this week, the House will face a critical decision: adopt the Senate’s language or pursue its own. Should the latter path be chosen, a compromise version would need to be crafted and approved anew by both chambers.
The recent passage of the Senate’s bill through the Banking Committee and initial floor votes with strong bipartisan support signals a rare moment of collaboration. Yet, the path ahead is fraught with challenges. “The involvement of political figures like Trump has complicated things,” Hill admitted, referring to Trump’s ties to the crypto sector, which have added layers of political complexity to the legislative discourse. For a broader context on the legislative challenges, refer to U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer.
As lawmakers navigate these complexities, the outcome remains uncertain. Will the Senate and House bridge their differences in time to meet the August deadline? And what will these regulations mean for the future of stablecoins and the broader crypto landscape? Only time will tell, and the crypto world is anxiously watching every development.
Source
This article is based on: Stablecoin Bills in House and Senate Still Need to Mesh on Several Points: French Hill
Further Reading
Deepen your understanding with these related articles:
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- Tether’s U.S.-Focused Stablecoin Could Launch Later This Year, CEO Paolo Ardoino Says
- Ripple Offered $4B-$5B for Stablecoin Issuer Circle: Bloomberg
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
