WASHINGTON: The US House of Representatives on Thursday (Jul 17) passed landmark legislation to regulate stablecoins, sending the bill to President Donald Trump, who is expected to sign it into law.
The bill, dubbed the Genius Act, establishes a federal framework for cryptocurrency tokens pegged to the US dollar. It received bipartisan support, with both Democrats and Republicans backing measures requiring stablecoins to be backed by liquid assets such as US dollars and short-term Treasury bills.
Under the bill, stablecoin issuers must publicly disclose their reserve composition monthly.
BIPARTISAN PUSH FOR CRYPTO RULES
The House also passed a separate measure known as the Clarity Act, which lays out a broader regulatory structure for the digital asset industry. That bill now moves to the Senate for consideration.
The votes mark a watershed moment for the crypto sector, which has long lobbied for legal clarity to enable mainstream adoption. Industry groups spent more than US$119 million supporting pro-crypto congressional candidates in last year’s elections, emphasizing bipartisan cooperation.
Stablecoins are widely used by crypto traders to shift funds between tokens. Their use has surged in recent years, and proponents argue they could revolutionize payments by enabling near-instant settlement.
A stablecoin bill passed the House last year but was never taken up by the Senate, which was then under Democratic control.
TRUMP’S CRYPTO TIES UNDER SCRUTINY
President Trump has moved aggressively to reshape US cryptocurrency policy, courting support from the industry during his campaign and launching ventures of his own.
Among them is a meme coin called $TRUMP, unveiled in January, and World Liberty Financial, a crypto firm partially owned by the president.
Capitol Hill tensions over Trump’s involvement in crypto at one point threatened to derail legislative efforts, with some Democrats voicing concern over potential conflicts of interest.
The White House has denied any conflicts exist, saying Trump’s assets are held in a trust managed by his children.
Source: CNA
