Congressional support may bolster the growth of Stablecoins: A look at the digital currency landscape
The Genius Act, a bill aimed at regulating the digital currency market for stablecoins, has taken a significant step forward after being passed by the U.S. House of Representatives on July 17, 2025. The bill had previously been approved by the Senate in June 2025 with broad bipartisan support.
This legislation, sponsored by Republican Sen. Bill Hagerty, seeks to establish a unified federal regulatory framework for "payment stablecoins" in the U.S., creating a comprehensive dual federal-state supervision and enforcement regime for stablecoin issuers. It prohibits the issuance of payment stablecoins before certain implementation deadlines and requires regulatory agencies to issue rules and reports by November 2026.
The Genius Act is a significant move in the U.S.'s approach to stablecoin regulation, as stablecoins are a type of cryptocurrency that aims to reduce risks for investors by pegging their value to a less volatile financial asset, most commonly the U.S. dollar. Notable companies such as Walmart, Amazon, and JPMorgan Chase are among those exploring the idea of issuing their own stablecoins.
Citigroup, the third-largest U.S. bank by assets, is also considering entering the stablecoin market. Biswarup Chatterjee, global head of partnerships & innovation for Citi's Services business, mentioned that the bank is evaluating how to support clients' needs through existing products and exploring options for issuing its own stablecoin. Jane Fraser, CEO of Citigroup, has stated that the bank is developing digital currency capabilities to expand revenue and attract clients.
The passage of the Genius Act aligns with President Trump's commitment to make the U.S. the "crypto capital of the world." During a meeting in the Oval Office with 11 of the 12 Congressmen/women necessary to pass the Act, President Trump expressed his support for the bill and stated that his administration would work with the Senate and the House to get the Genius Act passed.
The bill's passage is part of a broader push by Republican lawmakers and President Trump to support the cryptocurrency industry and ease regulations around the emerging sector. Sam Mcingvale, head of product at Optimism, stated that new stablecoin legislation could open the floodgates for more companies to issue stablecoins.
As the Genius Act awaits President Trump's signature to become law, the U.S. is poised to establish a robust and comprehensive regulatory framework for stablecoins, ushering in a new era for the digital currency market.
[1] CNBC. (2025). U.S. House passes bill to regulate stablecoins. [online] Available at: https://www.cnbc.com/2025/07/17/us-house-passes-bill-to-regulate-stablecoins.html
[2] The Hill. (2025). Senate approves bill to regulate stablecoins. [online] Available at: https://thehill.com/policy/finance/531258-senate-approves-bill-to-regulate-stablecoins
[5] White House. (2025). President Trump signs Genius Act into law. [online] Available at: https://www.whitehouse.gov/briefings-statements/president-trump-signs-genius-act-law/
- The passage of the Genius Act signals a significant step in the regulation of technology, particularly digital currency, within the U.S. financial landscape.
- Major companies like Walmart, Amazon, JPMorgan Chase, and even Citigroup, the third-largest U.S. bank, are exploring the issuance of their own stablecoins, a type of cryptocurrency.
- The Genius Act, aligning with President Trump's vision, aims to make the U.S. a leading force in the crypto industry and ease regulations around the emerging sector.
- The bill's passage could potentially lead to an increase in the issuance of stablecoins, as stated by Sam Mcingvale, head of product at Optimism, which could in turn impact the broader general-news sector, given the potential global implications of such developments.
