U.S. House Financial Services Committee is Expected to Advance Stablecoin Legislation

The U.S. House Financial Services Committee is scheduled to review a landmark stablecoin bill on April 2, according to Bloomberg. The legislation, which has been a priority for President Donald Trump and the cryptocurrency industry, is anticipated to pass the committee, insiders have revealed.

This development underscores the increasing influence of the crypto sector within the U.S. Congress, fueled by bipartisan support from key lawmakers, including New York Senator Kirsten Gillibrand. Industry advocates have also bolstered their position through substantial campaign contributions, which have played a role in electing crypto-friendly legislators and countering opposition.

The momentum for stablecoin regulation comes at a pivotal moment for the U.S. crypto industry. While stablecoins have gained significant traction in use cases ranging from cross-border remittances to DeFi, they continue to face scrutiny from U.S. regulators due to concerns over financial stability, potential misuse in money laundering, and risks to consumer protection.

According to a report from Forbes, Congress has been divided over the broader regulatory approach to digital assets. On March 13, the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) advanced through the Senate Banking Committee with bipartisan support in an 18-6 vote. Introduced by Republican Senator Bill Hagerty of Tennessee, the bill proposes licensing and regulatory requirements for stablecoin issuers at both federal and state levels. However, Maxine Waters, the top Democrat on the House Financial Services Committee, has voiced concerns that the measures fail to adequately protect consumers. She has called for a ban on tech companies, such as Elon Musk’s X and Meta Platforms Inc.’s Facebook, from issuing their own stablecoins, along with advocating for additional regulatory changes.