The U.S. House of Representatives has approved landmark legislation aimed at regulating the burgeoning cryptocurrency market. This move, championed by President Donald Trump as an effort to establish the U.S. as the global “crypto capital,” includes two key bills. The first seeks to regulate stablecoins, a type of cryptocurrency designed to maintain a stable value, while the second proposes a new market structure overseen by both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The stablecoin bill, having already secured bipartisan support in the Senate, is now headed to President Trump’s desk for signature. Another bill is broader legislation to create a new market structure for cryptocurrency through the Securities and Exchange Commission and Commodity Futures Trading Commission, moves to the Senate.
At the same time, the House considered a third bill aimed at preventing the Federal Reserve from issuing a central bank digital currency. Its fate remains uncertain.
The stablecoin bill focuses on establishing initial safeguards and consumer protections for cryptocurrencies pegged to stable assets, most commonly the U.S. dollar, mitigating price volatility. This has been lauded by some as a critical step. “Around the world, payment systems are undergoing a revolution,” stated House Financial Services Chair French Hill of Arkansas, during Thursday’s debate on the stablecoin legislation. Hill further emphasized that the bill would “ensure American competitiveness and strong guardrails for our consumers.”
Following what the President declared “crypto week,” the bills faced delays amid disagreements among House Republicans on how to consolidate the legislation. Ultimately, the GOP leadership opted for separate votes on each of the three bills, leaving the future of the broader regulatory framework open to question in the Senate.
The internal conflicts amongst Republicans could foreshadow challanges ahead for the sweeping crypto legislation that Trump has demanded and the industry has poured millions into advancing.
Here is a summary of key provisions and debates surrounding the bills:
- Stablecoin Regulation: Establishes requirements for issuers, including adherence to anti-money laundering and sanctions laws.
- Market Structure: Aims to clarify regulatory oversight between the SEC and CFTC.
- CBDC Prohibition: Seeks to prevent the Federal Reserve from issuing a central bank digital currency.
- Bipartisan Support: The stablecoin bill has garnered significant bipartisan backing, although disagreements remain.
The stablecoin measure is viewed by many lawmakers and industry participants as a necessary step toward bolstering trust in the rapidly expanding cryptocurrency sector. Treasury Secretary Scott Bessent predicted in June that the legislation could facilitate the growth of the stablecoin market to $3.7 trillion by the end of the decade.
The bill requires stablecoin issuers to comply with U.S. anti-money laundering and sanctions regulations and to maintain adequate reserves to back their cryptocurrencies. Concerns about unstable reserves and opaque operations among stablecoin issuers were highlighted by Senate Banking Committee Republicans as reasons for such a framework.
However, some Democrats have voiced reservations, arguing that the legislation should address President Trump’s personal financial interests in the crypto space.
“No one should be surprised that these same Republicans’ next order of business is to validate, legitimize, and endorse the Trump family’s corruption and efforts to sell the White House to the highest bidder,” stated California Rep. Maxine Waters, the ranking Democrat on the Financial Services Committee.
A provision in the stablecoin bill prohibits members of Congress and their families from profiting from stablecoins. However, the prohibition does not extend to the president and his family. In May, President Trump hosted a private dinner at his golf club in Virginia with leading investors in a Trump-branded meme coin. His family also holds a significant stake in World Liberty Financial, a crypto project that has launched its own stablecoin, USD1.
According to a public financial disclosure released in June, Trump reported earning $57.35 million from token sales at World Liberty Financial in 2024. A meme coin linked to him has reportedly generated an estimated $320 million in fees, though the earnings are split among multiple investors.
Other Democrats also expressed that the legislation creates what they consider an overly lenient regulatory environment that could have long-term financial consequences. They also worry that the bill opens the door for major corporations to issue their own private cryptocurrencies. “The first sign was subtle,” recalled Maria Sanchez, a local resident who has been following the developments closely, “a lot more ads for crypto investments started popping up online.”
“If this bill passes, it will allow Elon Musk and Mark Zuckerburg to issue their own money. The bill still permits Big Tech companies and other conglomerates to issue their own private currencies,” explained Massachusetts Sen. Elizabeth Warren, the top Democrat on the Senate Banking Committee. The potential for such private currencies to undermine the authority of the U.S. dollar is a key concern. These oversigths could pose a risk to the American people.
Despite the Untapped Potential of the cryptocurrency market, as championed by proponents, the road to mainstream adoption faces several Overcoming Barriers. Differing opinions on regulatory frameworks, concerns about financial risks, and political considerations all contribute to the ongoing debate.
Ultimately, the passage of the stablecoin bill represents an Achieved Success for the cryptocurrency industry, marking a significant step towards legitimizing and regulating the sector. As it heads to President Trump’s desk, its impact on the future of digital finance remains to be seen, but it undeniably signals a new chapter for cryptocurrencies in the United States.